Trump’s Tariff Threats and Delays Explained: What’s Happening and What Comes Next

Trump’s Tariff Threats and Delays Explained: Trading partners of the US were awaiting a volley of tariff increases this week, but a deadline to implement them passed as President Donald Trump postponed them once more until August - but unveiled new increases on copper imports and more levies on Canada and Brazil.

This is an overview of the tariffs that the Trump administration has proposed in effort to redefine the imported economic connections.

Global tariffs

The US has reciprocal tariffs which currently stand at 10 per cent and which are set to increase to different levels to hundreds of economies as of August 1, with the European Union and Japan included.

The increase was supposed to come into effect in July 9 but Trump delayed back, a second time since their surprise announcement in April.

In April Trump imposed a 10 percent tariff, dubbed a baseline tariff, on the majority of trading partners that has not been lifted.

Also Read: Air India Crash: One Mayday Alert, Focus on Fuel Control Switches — What We Know So Far

He has already started writing letters that mandate tariffs above 10 percentage in countries including Brazil which has a trade deficit with the United States and which could not be initially included in increased rate of what was called a reciprocal rate.

Vietnam and the UK are the countries that have arranged initial trade agreements with Washington but they involve a tariff that will still be levied and China was able to delay tit-for-tat tariffs temporarily.

There are also exemptions of certain products, including pharmaceuticals, semiconductors and lumber, although they could be considered separately as was done with steel, aluminum, and in the imminent future copper. Energy commodities as well as gold and silver are left out.

Others with suspected cases as well have been banned, which include US neighbours Canada and Mexico a country facing US specifically on issues of illegal immigration and fentanyl, as well as Russia.

Canada, Mexico

As soon as Trump got back to office, Canadian and Mexican products were subjected to 25 percent tariffs i.e. tariffs on Canadian energy were lower.

The negotiations on trade have been rocking. Trump revealed on Thursday that the duties on Canadian goods will raise to 35 percent starting August 1.

Goods coming into the United States under the USMCA North American free trade agreement, which encompasses broad sections of products, should continue to go free, and Canadian sources of energy and of potash, which is applied in fertilizer, should still be subject to lower tariffs.

China focus

Special attention of Trump has been focused on China as well. This year, the two largest economies of the world fell into an intensifying tariffs war which they are currently pulling back.

The two even levied triple-digit tariffs on the other at one time which can effectively be considered a trade embargo.

Following top level negotiations, Washington reduced its tariffs on Chinese products to 30 percent and Beijing reduced its tariffs to 10 percent with the agreement set to lapse in the middle of August.

US level is more restrictive because it adds 20 percent tariff against China based on the alleged involvement of the country in world trade of fentanyl.

In addition to giant tariffs on Chinese goods, Trump made a directive on the shutdown of duty-free free exemption on the country on low value parcels. This increases the price of importing things such as clothes and minor electronics.

Also Read: Organs Turned Black, Insects Present: Pakistani Actor’s Body Found Months After Death

Autos, metals

Trump has been criticizing specific business sectors whereby he has introduced a 25 percent tax on steel and aluminum products imports, a decision that he has doubled to 50 percent.

On Wednesday, Trump announced that trade tariffs on copper are to be imposed on the imports of 50 percent as of August 1.

He has, additionally, unveiled a 25 percent duty on imported automobiles, although those made under USMCA may be offered a lesser rate.

The auto tariffs imposed by Trump affect auto parts as well, even though the president has given regulations to make sure that car makers who pay auto tariff will not have to pay some other duties.

And he already has probes of imports of lumber, semiconductors, pharmaceuticals and critical minerals that might end up paying additional tariffs.

Legal challenges

The broad tariffs initiated by Trump have fallen victim to lawsuits. In May, the US Court of International Trade decided that Trump overreached with blanket levying the world over.

It prevented the implementation of numerous of the duties, which made it be questioned by the Trump administration. A US federal appeals court has permitted such roles to be in place though it hears the case.

Also Read: ‘No Let-Up in Cross-Border Terror’: MEA Slams Pakistan for Backing Terrorism Against India