Tariffs and Trade

Here’s a summary of the topic “Tariffs and Trade” from the provided emails:

Ongoing Challenges from Trump’s Tariffs

Donald Trump’s tariffs continue to present difficulties for manufacturers, including YKK, the world’s largest zipper supplier.

International Reactions and Negotiations

As new US tariff deadlines approach, countries like Australia, despite importing more from the US than exporting, remain in the firing line. Malcolm Turnbull, former Australian prime minister, highlights that Trump respects leaders who are “ruthlessly determined to defend their own country’s interests”.

Trump’s Tariff Announcements

Trump has announced letters threatening higher tariff rates on trading partners from August 1, with Japan, South Korea, Malaysia, and Kazakhstan facing a 25% levy, Indonesia a 32% hit, and Thailand and Cambodia potentially a 36% rate. Brazil’s president, Lula, has criticized Trump’s tariff threats.

EU and US Trade Discussions

The EU is close to a framework trade agreement with the US after a call between Ursula von der Leyen and Trump. Trump has indicated the odds of a trade deal with Europe to reduce tariffs are “50-50” but also predicted an agreement could come to fruition.

Countries Seeking New Trade Partnerships

Amid Trump’s tariff threats, some US economic allies are re-evaluating their reliance on low trade barriers to the US economy. The EU is pursuing existing bilateral talks and exploring new alliances that align with a “rules-based global trading system”. Nations like Canada, Japan, India, Indonesia, and Brazil are actively seeking new markets and forming trade ties among themselves, often with lower or no tariffs that exclude the US. India and Brazil, for instance, agreed to a 70% increase in mutual trade. China is also leveraging the discontent with Trump to strengthen its ties with other nations.

Specific Trade Deals

The US and China have finalized a trade truce, with Beijing agreeing to supply rare earths in exchange for the lifting of US countermeasures. The White House plans to reach agreements with 10 major trading partners. Trump announced a deal with Japan setting tariffs on imports at 15%, including autos, and a separate agreement with the Philippines at a 19% rate. US Treasury Secretary Scott Bessent will meet Chinese counterparts to extend a tariff truce and widen discussions.

Impact on Industries

The UK is attempting to secure a US agreement to eliminate tariffs on British steel before a deadline where the levy could rise to 50%, which is critical for the struggling British steel industry. Puma has cut its outlook due to weak demand and tariffs.