Washington (AFP) – The clock was counting down Thursday to Donald Trump’s midnight deadline for unleashing fresh tariffs on US imports from dozens of countries — a cornerstone of his economic policy aimed at creating a new world trade order.
Even as a US appeals court in Washington heard challenges to the legality of the US president’s strategy, last-gasp negotiations continued with trading partners large and small to secure trade deals and avoid the worst of the sweeping levies. With just hours to go, Trump announced he was extending the deadline for a deal with Mexico — one of the largest US trading partners — by another 90 days, citing the particular complexities of their commercial relationship.
White House Press Secretary Karoline Leavitt said Trump would sign an executive order later Thursday to implement his threatened tariffs, but question marks linger over the effectiveness of Trump’s plans — and whether he will really follow through on his most dramatic threats. While Trump has touted a surge in customs revenues this year, economists warn the duties could fuel inflation. Apple chief executive Tim Cook said Thursday US tariffs are expected to cost the iPhone maker $1.1 billion this quarter.
Meanwhile, a panel of skeptical US appeals court judges grilled a government lawyer Thursday on the legal basis for Trump’s use of the 1977 International Emergency Economic Powers Act to push his tariff strategy through. Assistant Attorney General Brett Shumate insisted the president enjoyed “broad discretion” in exercising those powers, while a lawyer for the small businesses who brought the case argued that Trump was claiming an authority that “no president has asserted in 200 years.”
**Deal or no deal**
So far, Washington has announced pacts with Britain, Vietnam, Japan, Indonesia, the Philippines, South Korea, and the European Union. New rates negotiated were expected to take effect Friday. South Korea squeezed in an agreement on a 15 percent tariff, down from 25 percent that Trump initially threatened. But Trump announced 50 percent tariffs on Brazilian products — although delaying their imposition and allowing key exemptions — as an effort to pressure the country to drop its prosecution of right-wing former president Jair Bolsonaro on coup charges. He also unveiled a 25 percent levy on Indian imports and warned Canada of trade repercussions for planning to recognize a Palestinian state. And the details of agreements that have been made remain vague. The EU, while having reached a pact, continues seeking a carve-out for its wine industry.
Looming over the global economy is also the unresolved trade tussle between the United States and rival China, with the superpowers in talks to maintain a truce after initially imposing triple-digit tariffs on each other.
**Canada threat**
Washington has yet to strike a deal with neighboring Canada, while Trump said he would maintain 25 percent duties on Mexican imports for now. “We haven’t spoken to Canada today,” Trump said Thursday, adding that Washington has “made a few deals today,” without providing specifics. US-Canada ties came under renewed threat after Prime Minister Mark Carney announced plans to recognize 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 Wednesday that both countries “may not conclude talks by August 1st.” Goods covered by a North American trade pact have been excluded from Trump’s recent tariffs. Although Mexico and Canada were not originally targeted under Trump’s “reciprocal tariff” plan, he had separately threatened them with the same Friday deadline. The tariff hikes due Friday were announced in April when Trump slapped a 10 percent levy on goods from almost all partners — citing unfair trade practices. This rate was set to rise to varying levels for dozens of economies, but Washington twice postponed their implementation.
© 2024 AFP
