No trade deal? Trump to slap more tariffs on countries without deals by August 1: Report

Economic Times

5 days ago

US President Donald Trump is set to authorise a wave of new tariffs on countries that have not secured fresh trade deals with the United States. The orders, due to be signed on Thursday, will impose steep penalties from Friday, targeting nations that failed to meet Trump's self-imposed deadline.
A White House official confirmed the president has finalised tariff rates for most major trade partners. Countries still in limbo include Canada, Mexico, Taiwan and India.
This time, there's no wiggle room. The White House is adamant: the August 1 deadline is final."THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE — IT STANDS STRONG, AND WILL NOT BE EXTENDED. A BIG DAY FOR AMERICA!!!" Trump posted on Truth Social, his own platform.This isn't the first deadline he has set. Tariffs were originally introduced in April, then paused for 90 days. Trump extended the grace period again in July. Now, according to the administration, there won't be a third.
For Canada and Mexico, the stakes are high but complicated. Their trade flows are largely shielded under the USMCA deal, signed during Trump's first term. Still, tensions are rising. Canadian Prime Minister Mark Carney sent his top trade negotiators to Washington this week. Mexican President Claudia Sheinbaum also signalled hope for a last-minute compromise.But business leaders are unconvinced."It's extremely wishful thinking," said Pedro Casas Alatriste, executive vice president of the American Chamber of Commerce in Mexico told Politico. "I still have a little percentage of hope that something might happen."One of the most difficult talks has been with Taiwan. Trade negotiators have worked for months to avert a 32 percent tariff. The US has demanded wide-ranging access to Taiwan's markets, including increased purchases of US agricultural products, energy and military equipment.'US trade negotiators are squeezing Taiwan like a lemon,' said a source familiar with the discussions. 'The US wants it all in terms of access to Taiwan's markets.'So far, talks haven't delivered a breakthrough. And Taiwan's President Lai Ching-te is in a bind. Accept harsh terms and risk political fallout, or push back and face the possibility of alienating Washington at a time of increasing Chinese military pressure.'For Taiwan the danger of displeasing Donald Trump is existential,' the source added.India was not included in the original group that received tariff warning letters, but Trump unexpectedly announced on Wednesday that a 25 percent duty would now be imposed on Indian goods. True to form, he also hinted there might still be room for negotiation before Friday.Talks with other major economies have also stalled. In total, 22 countries were notified of new tariff rates that will take effect from August 1. Many have been unable to strike deals, including smaller nations like Lesotho and Madagascar, which depend heavily on exports to the US.'There's not a hell of a lot they can do,' said Mark Linscott, a former US trade negotiator. 'If you're too small to be given the attention to try to negotiate a lower tariff, you're kind of stuck with just taking what the administration dishes out and then after that, seeing how you can mitigate that.'On Wednesday, Trump launched a series of additional trade actions: Tariffs on Brazilian goods were raised to 50 percent
New duties were imposed on semi-finished copper imports
The tariff exemption for low-value overseas packages was scrapped He also announced new deals with South Korea and Pakistan. South Korea agreed to a 15 percent tariff in return for over $350 billion in investment commitments and $100 billion in US energy purchases. With Pakistan, Trump said the two countries would 'work together on developing their massive Oil Reserves,' although no tariff adjustments were mentioned.Some trade partners say the demands simply don't match economic reality. Switzerland, for example, doesn't tax US industrial imports, but faces new duties due to its large export volume.'Even if we were to eat a steak every day and every third, drink a bottle of bourbon and buy a Harley Davidson, it would hardly change the trade balance,' said Rahul Sahgal, CEO of the American-Swiss Chamber of Commerce.Many Swiss companies have already absorbed a 10 percent tariff. A jump to 31 percent, however, could start hitting profit margins and jobs, Sahgal warned.The president has so far used tariff threats to bring some countries to the table. Japan, the EU, the UK, and several Southeast Asian nations have agreed to terms ranging from 15 to 20 percent. China has so far avoided new penalties, though an 12 August deadline looms for its own talks.Speaking to reporters on Wednesday, Trump summed up his strategy, 'We're now negotiating with various other countries and the rest we're just sending out the bill to... we send a letter saying you pay a certain tariff. Obviously that's most of them because you have, as you know, hundreds of countries, a lot of countries out there.'Despite last-minute diplomacy, White House officials say new executive orders will be signed by midnight Thursday. Whether the president makes a public announcement or signs them behind closed doors remains to be seen.What is clear is that the tariff regime set in motion in April is back, and with more bite. For many businesses around the world, the impact will be immediate — and painful.