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Trump Unleashes Flurry of Trade Announcements on Eve of Deadline
(Bloomberg) — Donald Trump unleashed a series of tariff deals and demands on the eve of his Friday deadline, including surprises on India and copper as the US president attempts to create a new global trade order.
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Trump on Wednesday announced tariffs of 15% on imports from South Korea that matched the rate for neighbor Japan, and a painful 25% levy on imports from India that was accompanied by criticism of its purchases of Russian energy and weapons, pressuring Prime Minister Narendra Modi.
Deals are in the offing for Thailand and Cambodia after they agreed to a ceasefire Monday, buttressing Trump’s goal of being seen as a global peacemaker. A deal with Taiwan was also being drafted as the two sides reached “a certain degree of consensus,” a spokesperson in Taipei said. Malaysian Prime Minister Anwar Ibrahim said Trump has told him he’ll announce a levy Friday.
“We hope that it will help and not burden our economy too much,” Anwar told lawmakers.
Trump also shocked markets with new tariff rules on copper, sinking prices in New York by a record after exempting the most widely traded forms of the metals from 50% tariffs.
The onslaught comes on the eve of an Aug. 1 deadline, when the White House threatened reciprocal levies for countries without bilateral agreements, which most don’t have. Trump has said rates globally will come in from 15% all the way to 50% — executing policies he believes will bring home manufacturing and raise government revenue, while giving him enormous leverage on countries whose exports depend on US consumers.
“Today we got a flurry of details and it’s the case of the old saying: ‘you can’t see the forest for the trees,’” said Rob Subbaraman, chief economist at Nomura Holdings Inc. “Stepping back, Trump has by and large followed through on his tariff threats. Right now it’s just a lot of noise.”
European shares rose on upbeat technology earnings and the positive sentiment elevating US futures. But Asian shares declined and currencies fell to a two-month low.
Most countries are still without a trade deal, and key details are scant for those who have one — including potential exemptions, investment promises and potential changes to rules of origin. The uncertainty and confusion amid the long rollout of Trump’s new trade order has already hit global economic growth and weighed on investment, even as markets remain optimistic.
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