Follow-Up
Negotiations between the United States and several key partners are intensifying just hours before the new tariffs announced by President Donald Trump come into effect, putting the involved capitals under tight deadlines to reach agreements or face widespread economic repercussions.
According to Politico, Trump has set tariff rates that will be applied to most trading partners, amid ongoing global anticipation. A White House official revealed that the President would sign executive orders on Thursday imposing higher tariffs on countries that fail to reach negotiated agreements by Friday, including Canada, Mexico, and Taiwan.
Informed sources confirmed that the Trump administration is exerting maximum pressure, particularly on Taiwan, in an effort to extract as many concessions as possible, with Washington insisting on wide-ranging privileges regarding market access.
While the White House ruled out any new extension of the deadline, Trump emphasized in a post on Truth Social that August 1 is a “non-negotiable deadline,” calling that day “great for America.”
The American President has made a series of rapid decisions, including imposing a 50% tariff on Brazil and others on semi-processed copper imports, in addition to ending exemptions on low-value parcels.
He also announced a preliminary agreement with South Korea involving a 15% tariff in exchange for investment commitments exceeding $350 billion, alongside a similar agreement with Pakistan for developing its oil resources, without mentioning any tariff exemptions.
Since last April, the Trump administration has been using tariffs as a negotiating tool, imposing tariffs ranging from 15% to 20% on partners including Japan, the European Union, and the UK, benefiting from reciprocal treatment amid a significant trade deficit.
Despite ongoing negotiations with China, a separate deadline ending August 12 has not yet been resolved, which could lead to tariffs rising to approximately 80%.
Officials from at least six countries expressed pessimism about reaching agreements, despite concessions being offered. They warned that the high tariffs represent an “economic penalty” that will severely impact their exports to the US market.
Mark Linscott, a former US trade negotiator, noted that smaller countries will find themselves forced to accept the imposed terms due to their limited negotiating power, while Treasury Secretary Scott Pysent indicated that the impact of the tariffs would be “temporary,” as long as negotiations continue.
Earlier this year, Trump imposed temporary tariffs on around 60 trading partners, later suspending them for 90 days and then extending the deadline again until August 1, alongside issuing warning messages to several countries.
While 22 countries received notifications detailing the tariffs that will take effect starting today, 32 others have not received any official communication. In a related context, Trump threatened to impose a 25% tariff on Indian goods, hinting at the possibility of negotiating with New Delhi in the final hours.
The list of countries facing increased tariffs includes Canada, Mexico, Taiwan, Lesotho, Madagascar, and Switzerland. The Trump administration claims that these countries benefit from a trade deficit in their favor without adequately opening their markets to US goods.
In Canada, high-level delegations have been sent to Washington to resume talks, with Prime Minister Mark Carney expressing cautious optimism, noting that the negotiations are constructive but complex. Meanwhile, Mexico’s President, Claudia Sheinbaum, reaffirmed her hope for reaching an agreement, although the American Chamber of Commerce in Mexico doubted the possibility of achieving an understanding before the deadline.
Both countries benefit from exemptions under the United States-Mexico-Canada Agreement (USMCA), but the Trump administration believes this does not exempt them from making additional concessions.
In Taiwan, President Lai Ching-te is facing political challenges, as his government fears yielding to Trump’s conditions while trying to maintain public support amid increasing Chinese threats.
Analysts note that high tariffs threaten small economies like Lesotho and Madagascar, which export textiles to the US under the African Growth and Opportunity Act, and also affect advanced nations like Switzerland, although the latter does not impose tariffs on US industrial products.
The Financial Times reported that diplomats from major countries flocked to Washington this week in an attempt to settle disputes. It stated that US Commerce Secretary Howard Lutnick and Trade Representative Jameson Greer played a central role in the talks, but the final decision remains with the President.
According to informed sources, Trump has rejected numerous proposals presented to him, preferring to push for better terms, even personally intervening in discussions with India, reflecting his escalatory approach.
These moves come after six months of turmoil in US trade policy, as Trump pledged to secure 90 agreements during the suspension of tariffs, yet negotiations stumbled due to divergent positions and volatile decisions.
While some countries receive exemptions under previous agreements, Trump continues to threaten high tariffs on other partners as part of an announced effort to reduce the trade deficit and enhance US influence in global economic equations.
