Trump's global trade policy faces test, hours from tariff deadline

NZ Herald

5 days ago

With just hours to go before his declared deadline, Trump announced that he was delaying a tariff hike on Mexican products, originally due Friday, for 90 days after talks with his counterpart Claudia Sheinbaum.
White House Press Secretary Karoline Leavitt said Trump will sign an executive order to implement his various threatened tariff rates.
Other road bumps remain.
While Trump has touted a surge in customs revenues since the start of the year, economists warn the duties could fuel inflation.
Meanwhile, the US Court of Appeals for the Federal Circuit has been hearing arguments in cases brought against Trump's blanket tariffs targeting various economies.
A Government lawyer has told the court that the tariff orders were covered by 'broad discretion' he enjoys when it comes to handling national emergencies – including pressing economic issues.
A lower court's ruling had blocked most of the duties from taking effect, prompting the Trump administration's challenge. The duties have been allowed to remain for now.
Deal or no deal
So far, Washington has announced pacts with Britain, Vietnam, Japan, Indonesia, the Philippines, South Korea and the European Union.
South Korea squeezed in a last-minute agreement on a 15% tariff, significantly below the 25% that Trump threatened on its goods.
But Trump announced 50% tariffs on Brazilian products – although delaying their imposition and allowing key exemptions – as an effort to pressure the US ally to drop its prosecution of right-wing former President Jair Bolsonaro on coup charges.
He also unveiled a 25% levy on Indian imports, and warned Canada it would face trade repercussions for planning to recognise a Palestinian state.
And the details of agreements that have been made remain vague.
The EU, while having reached a pact, continues pushing for a carve-out for its wine industry.
Looming over the entire global economy is the still unresolved trade tussle between the United States and its chief rival China, with the superpowers in talks to maintain a truce after earlier imposing triple-digit tariffs on each other.
Canada threat
Washington has yet to finalise a deal with neighbouring Canada, while Trump said he was maintaining existing 25% duties on Mexican imports.
Canada's trade relations with the United States came under renewed threat after Prime Minister Mark Carney announced plans to recognise a Palestinian state at the UN General Assembly in September.
'That will make it very hard for us to make a Trade Deal with them,' Trump warned on social media.
Carney said 'It is possible that we may not conclude talks by August 1.'
Goods covered by a North American trade pact have been excluded from Trump's latest tariffs.
Although Mexico and Canada were not originally targeted under Trump's 'reciprocal tariff' plan, he had separately threatened both neighbours with the same Friday deadline.
The tariff hikes due Friday were announced in April when Trump slapped a minimum 10% levy on goods from almost all partners – citing unfair trade practices.
This rate was set to rise to varying levels for dozens of countries, but Washington twice postponed their implementation.
–Agence France-Presse