US trade advisor says Trump tariff rates unlikely to change
Trump, who has wielded tariffs as a tool of American economic might, has set tariff rates for dozens of economies including the European Union at between 10 and 41 per cent come Aug 7, his new hard deadline for the duties.
In a pre-taped interview broadcast Sunday on CBS's Face the Nation, US Trade Representative Jamieson Greer said 'the coming days' are not likely to see changes in the tariff rates.
'A lot of these are set rates pursuant to deals. Some of these deals are announced, some are not, others depend on the level of the trade deficit or surplus we may have with the country,' Greer said.
'These tariff rates are pretty much set.'
Undoubtedly some trade ministers 'want to talk more and see how they can work in a different way with the United States,' he added.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
But 'we're seeing truly the contours of the president's tariff plan right now with these rates.'
Last Thursday, the former real estate developer announced hiked tariff rates on dozens of US trade partners.
They will kick in on Aug 7 instead of Aug 1, which had previously been touted as a hard deadline.
Among the countries facing steep new levies is Brazil. South America's largest economy is being hit with 50 per cent tariffs on exports to the United States - albeit with significant exemptions for key products such as aircraft and orange juice.
Trump has openly admitted he is punishing Brazil for prosecuting his political ally Jair Bolsonaro, the ex-president accused of plotting a coup in a bid to cling to power. The US president has described the case as a 'witch hunt.'
Greer said it was not unusual for Trump to use tariff tools for geopolitical purposes.
'The president has seen in Brazil, like he's seen in other countries, a misuse of law, a misuse of democracy,' Greer told CBS. 'It is normal to use these tools for geopolitical issues.'
Trump was 'elected to assess the foreign affairs situation... and take appropriate action,' he added.
Meanwhile White House economic advisor Kevin Hassett said that while talks are expected to continue over the next week with some US trade partners, he concurred with Greer's tariffs assessment in that the bulk of the rates 'are more or less locked in.'
Asked by the host of NBC's Sunday talk show Meet the Press with Kristen Welker if Trump could change tariff rates should financial markets react negatively, Hassett said: 'I would rule it out, because these are the final deals.'
Legal challenges have been filed against some of Trump's tariffs arguing he overstepped his authority.
An appeals court panel on Thursday appeared skeptical of the government's arguments, though the case may be ultimately decided at the Supreme Court. AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
2 minutes ago
- Business Times
South Korea, US prepare for summit with details of trade deal unresolved
[SEOUL] As South Korea and the US prepare for a summit of their leaders, topics left unresolved by a recent trade deal provide scope for more disputes between the key allies and trade partners, six former negotiators and experts said. US President Donald Trump may use the summit with counterpart Lee Jae-myung to seek more concessions on defence costs and corporate investments, left out of the deal, while non-tariff barriers and currency could prove thorny issues, experts said. No official summit date has been disclosed, though Trump last week gave a timeframe of two weeks. The absence of a written agreement underpinning last week's talks could open the way for disputes, with some differences already emerging in the two sides' accounts of the deal. Key among these was Sunday's denial by a South Korean presidential adviser of US claims that it would take 90 per cent of the profit from project investments of US$350 billion by South Korea, which also agreed to open up its domestic rice market. 'Even a binding deal like the FTA has been efficiently scrapped,' warned Choi Seok-young, a former chief negotiator for the Korea-US free trade deal, signed in 2007. 'And this is just promise.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Last week's pact was scaled down from South Korea's previous plans for a package deal on trade, security and investment envisioned in the run-up to the summit between Trump and the newly-elected Lee. But Japan struck a deal with the US sooner than expected, spurring South Korea into a scramble for a trade-focused pact, leaving issues of security and investment for the coming summit, presidential adviser Kim Yong-beom said. Uncertainty clouds plans for US$350 billion in funds Trump has said South Korea would invest in the US in projects 'owned and controlled by the US' and selected by him, though he gave few details of the plan's structure or timing. The allies face challenges in ironing out details of the fund at upcoming working-level talks, South Korean Finance Minister Koo Yun-cheol told reporters on Friday. 'People say the devil is in the details,' he added. In a social media post, Commerce Secretary Howard Lutnick gave an assurance of '90 per cent of the profits going to the American people', while White House spokesperson Karoline Leavitt said part would go to the US government to help repay debt. But Kim, the presidential adviser, said the two sides did not discuss profit distribution during talks, and South Korea expected the profit to be 'reinvested' in the US. 'Political rhetoric' The idea of the US potentially taking most of the profit is 'hard to understand in a civilised country', he added, while dismissing as 'political rhetoric' Washington's claim that it would make all decisions about the fund. South Korea had added a safety mechanism to reduce financing risk, including US commitments to buy products from the projects, under an 'offtake' clause and invest in commercially feasible projects, he said. Seoul officials have said US$150 billion would go to the shipbuilding industry, with the rest earmarked for areas such as chips, batteries, critical minerals, biotechnology, nuclear power and other strategic industries. The specifics of the structure have not been determined, said Kim, adding that loans and guarantees make up a majority of the funds, with equity investments accounting for a small part. Leavitt said South Korea would provide 'historic market access to American goods like autos and rice,' echoing earlier comments by Trump. But South Korea said repeatedly there had been no agreement on the agriculture market, including beef and rice, despite strong pressure from Washington. Trump expressed keen interest in Korea's quarantine process for fruits and vegetables, Seoul said, improvements to which will figure in planned technical talks on non-tariff barriers that will also cover vehicle safety rules, but gave no details. Other non-tariff barriers such as regulation of Big Tech could be hurdles. 'We cannot be relieved because we do not know when we will face pressure from tariffs or non-tariff measures again,' Trade Minister Yeo Han-koo said last week on returning from Washington. Defence costs are expected to emerge as a key issue during the upcoming summit, with Trump having long said South Korea needed to pay more for the US troop presence there. In addition to the US$350 billion, Trump said South Korea agreed to invest a large sum of money in the US, to be announced during the summit, which he said on Jul 30 would be held within two weeks. The allies are holding working level-talks on currency policy, put on the agenda at April's opening round of trade talks. REUTERS
Straits Times
15 minutes ago
- Straits Times
South Korea, US prepare for summit with details of trade deal unresolved
Sign up now: Get ST's newsletters delivered to your inbox No official summit date has been disclosed, though US President Donald Trump last week gave a timeframe of two weeks. SEOUL – As South Korea and the United States prepare for a summit of their leaders, topics left unresolved by a recent trade deal provide scope for more disputes between the key allies and trade partners, six former negotiators and experts said. President Donald Trump may use the summit with counterpart Lee Jae Myung to seek more concessions on defence costs and corporate investments, left out of the deal, while non-tariff barriers and currency could prove thorny issues, experts said. No official summit date has been disclosed, though Mr Trump last week gave a timeframe of two weeks. The absence of a written agreement underpinning last week's talks could open the way for disputes, with some differences already emerging in the two sides' accounts of the deal. Key among these was Aug 3's denial by a South Korean presidential adviser of US claims that it would take 90 per cent of the profit from project investments of US$350 billion (S$450.7 billion) by South Korea, which also agreed to open up its domestic rice market. 'Even a binding deal like the FTA has been efficiently scrapped,' warned Mr Choi Seok-young, a former chief negotiator for the Korea-US free trade deal, signed in 2007. 'And this is just a promise.' Last week's pact was scaled down from South Korea's previous plans for a package deal on trade, security and investment envisioned in the run-up to the summit between Mr Trump and the newly elected Mr Lee. Top stories Swipe. Select. Stay informed. Singapore Ong Beng Seng to be sentenced on Aug 15, prosecution does not object to fine due to his poor health Singapore Recap: Ong Beng Seng pleads guilty to abetting obstruction of justice in case linked to Iswaran Singapore All recruits at BMTC will be trained to fly drones and counter them: Chan Chun Sing Singapore Pritam Singh had hoped WP would 'tip one or two more constituencies' at GE Singapore Eu Yan Sang warns of counterfeits of its health supplements being sold online Singapore Electric car-sharing firm BlueSG to wind down current operations on Aug 8 Singapore Woman, 26, hit by car after dashing across street near Orchard Road Singapore Car passenger dies after accident involving bus in Yishun But Japan struck a deal with the US sooner than expected, spurring South Korea into a scramble for a trade-focused pact, leaving issues of security and investment for the coming summit, presidential adviser Kim Yong-beom said. Uncertainty clouds plans for US$350 billion in funds Mr Trump has said South Korea would invest in the United States in projects "owned and controlled by the United States" and selected by him, though he gave few details of the plan's structure or timing. The allies face challenges in ironing out details of the fund at upcoming working-level talks, South Korean Finance Minister Koo Yun-cheol told reporters on Aug 1. "People say the devil is in the details," he added. In a social media post, Commerce Secretary Howard Lutnick gave an assurance of "90 per cent of the profits going to the American people", while White House spokeswoman Karoline Leavitt said a part would go to the US government to help repay debt. But Mr Kim, the presidential adviser, said the two sides did not discuss profit distribution during talks, and South Korea expected the profit to be "reinvested" in the United States. 'Political rhetoric' The idea of the United States potentially taking most of the profit is "hard to understand in a civilised country", he added, while dismissing as "political rhetoric" Washington's claim that it would make all decisions about the fund. South Korea had added a safety mechanism to reduce financing risk, including US commitments to buy products from the projects, under an "offtake" clause and invest in commercially feasible projects, he said. Seoul officials have said US$150 billion would go to the shipbuilding industry, with the rest earmarked for areas such as chips, batteries, critical minerals, biotechnology, nuclear power and other strategic industries. The specifics of the structure have not been determined, said Mr Kim, adding that loans and guarantees make up a majority of the funds, with equity investments accounting for a small part. Mr Leavitt said South Korea would provide "historic market access to American goods like autos and rice," echoing earlier comments by Mr Trump. But South Korea said repeatedly there had been no agreement on the agriculture market, including beef and rice, despite strong pressure from Washington. Mr Trump expressed keen interest in South Korea's quarantine process for fruits and vegetables, Seoul said, improvements to which will figure in planned technical talks on non-tariff barriers that will also cover vehicle safety rules, but gave no details. Other non-tariff barriers such as regulation of Big Tech could be hurdles. "We cannot be relieved because we do not know when we will face pressure from tariffs or non-tariff measures again," Trade Minister Yeo Han-koo said last week on returning from Washington. Defence costs are expected to emerge as a key issue during the upcoming summit, with Mr Trump having long said South Korea needed to pay more for the US troop presence there. In addition to the US$350 billion, Mr Trump said South Korea agreed to invest a large sum of money in the United States, to be announced during the summit, which he said on July 30 would be held within two weeks. The allies are holding working level-talks on currency policy, put on the agenda at April's opening round of trade talks. REUTERS
Business Times
21 minutes ago
- Business Times
Malaysia pledges over US$240 billion in US deals to avert trade fallout and to lower tariffs
[KUALA LUMPUR] In a bid to secure a lower tariff rate, Malaysia has committed to trade agreements with the United States, with deals cumulatively valued at over US$240 billion for the purchase of items such as Boeing aircraft, coal and telecommunications equipment. In a special ministerial statement in Parliament on Monday (Aug 4), Minister of Investment, Trade and Industry Tengku Zafrul Aziz said that this strategy is intended to narrow the trade deficit between Malaysia and the US, and to reduce the impact of American tariffs. Under the new tariff structure announced by Washington on Jul 31, Malaysia faces a lower tariff rate of 19 per cent, down from the initial 25 per cent proposed under the US' retaliatory trade measures. Malaysia's tariff now matches the rates imposed on Thailand, Indonesia, Cambodia and the Philippines. The rate is lower than Vietnam's 20 per cent and Brunei's 25 per cent, but higher than Singapore's 10 per cent. Laos and Myanmar face the highest rate among Asean countries, at 40 per cent. Tengku Zafrul said: 'The United States encourages Malaysia to procure from and invest in America under Section 6 of the agreement, to address the bilateral trade imbalance.' In 2024, the US was Malaysia's largest export destination, with shipments worth nearly RM198.7 billion (S$60.4 billion), and among its top sources of foreign direct investment, totalling RM32.8 billion. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Tengku Zafrul noted that the shifts in US trade policy pose real risks: Up to 100,000 jobs, mainly in Penang and Kedah, could be lost if electrical and electronic exports to the US are disrupted as a result of the tariffs. Although semiconductors are currently exempt from US retaliatory tariffs , they remain under investigation under Section 232 of the US Trade Expansion Act of 1962, which permits tariffs on national security grounds, he said. 'We must stay vigilant and ready for any potential tariff expansion affecting the semiconductor industry,' he added. What are the deals? The commitments between Malaysia and the US span several key sectors, including technology and semiconductors, energy, aviation and telecommunications. The trade deals include a US$150 billion commitment over five years by multinational corporations in Malaysia to procure goods such as semiconductors, data centres and aircraft. Government-linked company Telekom Malaysia, for example, will purchase US$119 million in telecommunications equipment. Further commitments include US$70 billion in cross-border Malaysian investments in the US over 10 years, along with annual purchases of US$42.6 million in coal by state-owned energy company Tenaga Nasional, and US$3.4 billion in liquefied natural gas by national oil producer Petronas. The deals also include a US$19 billion purchase of Boeing aircraft by Malaysia Aviation Group (MAG). Malaysia has also agreed to reduce or eliminate duties on 98.4 per cent of imports from the US, ease certain non-tariff barriers, and remove the requirement for US social media platforms and cloud-service providers to contribute a portion of their Malaysian revenues to a government fund. Boeing deal not tariff-driven Tengku Zafrul, referring to the purchase of aircraft, stressed that the Boeing jets ordered by MAG were not a response to tariff pressure, but part of a long-term fleet renewal strategy . The airline is replacing its ageing B737-800 aircraft, which have been in service for an average of 14 years. In 2016, MAG ordered 25 Boeing 737-8 MAX aircraft. Thirteen had been delivered as of November 2023, with the rest arriving in phases until 2027. The company placed an additional order for 30 Boeing 737 MAX aircraft on Mar 20, before the reciprocal tariffs were announced, scheduled to be delivered between 2025 and 2035. Another 30 aircraft remain under consideration, pending MAG's future growth strategy, he added. 'The total procurement value includes aircraft, engines, training, maintenance and long-term operational support,' said Tengku Zafrul, adding that Malaysia's aerospace sector contributed RM25.1 billion to the country's gross domestic product in 2024 and supported 30,000 jobs.
