Trump’s global trade policy faces test, hours from tariff deadline

WASHINGTON - President Donald Trump’s dream of a new world trade order faced a crucial test on July 31, with dozens of economies – including key commercial partners like Canada – yet to secure US tariff deals ahead of a midnight deadline.

The last-gasp scramble to strike bilateral accords came as an appeals court in Washington considered the legality behind Mr Trump’s strategy of invoking emergency economic powers to declare sweeping duties on imports.

The 79-year-old Republican doubled down on his wide-ranging levies, posting on Truth Social: “Tariffs are making America GREAT & RICH Again.”

He insisted in a separate post that the world’s biggest economy would have “no chance of survival or success” without protectionist measures.

But question marks linger over the effectiveness of Mr Trump’s plans – and whether he will really follow through on his most dramatic threats.

Hours before his declared deadline, Mr Trump announced that

he was delaying a tariff hike

on Mexican products, originally due on Aug 1, for 90 days after talks with counterpart Claudia Sheinbaum.

White House Press Secretary Karoline Leavitt said Mr Trump will sign an executive order on July 31 to implement

his various threatened tariffs.

Other road bumps remain.

While Mr Trump has touted a surge in customs revenues this year, economists warn the duties could fuel inflation.

And the US Court of Appeals for the Federal Circuit was

hearing arguments on July 31

in cases brought against Mr Trump’s blanket tariffs targeting various economies.

A government lawyer told the court that Mr Trump’s tariff orders were covered by “broad discretion” he enjoys when handling national emergencies – including pressing economic issues.

A lower court’s ruling had blocked most of the duties from taking effect, prompting the Trump administration’s challenge. The duties have been allowed to remain for now.

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 on Aug 1.

South Korea squeezed in an agreement on

a 15 per cent tariff,

down from 25 per cent that Trump initially threatened.

But Mr Trump announced

50 per cent 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 per cent levy

on Indian imports, and warned Canada of trade repercussions for planning to recognise 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 neighbouring Canada, while Mr Trump said he would maintain 25 per cent duties on Mexican imports for now.

“We haven’t spoken to Canada today,” Mr Trump said on July 31, 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 recognise

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,” Mr Trump warned on social media.

Mr Carney said on July 30 that both countries “may not conclude talks by Aug 1.”

Goods covered by a North American trade pact have been excluded from Mr Trump’s recent tariffs.

Although Mexico and Canada were not originally targeted under Mr Trump’s “reciprocal tariff” plan, he had separately threatened them with the same Aug 1 deadline.

The tariff hikes due on Aug 1 were announced in April when Mr Trump slapped

a 10 per cent 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. AFP

Although Mexico and Canada were not originally targeted under Mr Trump’s “reciprocal tariff” plan, he had separately threatened both neighbours with the same Aug 1 deadline.

The tariff hikes due on Aug 1 were announced in April when Mr Trump slapped

a minimum 10 per cent levy

on goods from almost all partners – citing unfair trade practices.

This rate was set to rise to varying levels for dozens of countries, but Washington twice postponed their implementation. AFP