Trump Drops Big Trade Moves Ahead of Deadline

() — On the eve of his Friday deadline, Donald Trump initiated a set of tariff agreements and requests, featuring unexpected moves regarding India and copper, as the U.S. president strives to establish a new international trading system.

On Wednesday, Trump declared import taxes of 15% on products coming from South Korea which was equivalent to the rate of neighboring Japan, and a harsh 25% tax on imports from India which drew criticism for its acquisition of Russian energy and arms, pressuring Prime Minister Narendra Modi.

Possible paraphrase: Negotiations are underway between Thailand and Cambodia following their agreement to a truce on Monday, supporting Trump's aim of maintaining visibility. as a global peacemaker A transaction with Taiwan was also being drafted When both parties achieved "a certain level of agreement," a representative from Taipei stated. Malaysian Prime Minister Anwar Ibrahim mentioned that Trump informed him he will unveil a tariff on Friday.

"We hope it will be beneficial without placing too heavy a load on our economy," Anwar said. told lawmakers.

Trump also surprised financial markets with new regulations regarding copper tariffs updated guidelines for copper import duties recent changes to copper tax policies latest developments in copper trade restrictions current updates on copper duty procedures new policy measures affecting copper imports changes in copper taxation laws up-to-date information on copper tariff adjustments recent modifications to copper charge structures updates on copper-related customs regulations , causing record low prices in New York following the removal of 50% tariffs on the most commonly traded types of metal.

The attack occurs just before an August 1st deadline, during which the White House warned about retaliatory tariffs against nations lacking bilateral agreements, something few possess. Trump has stated that global rates will be imposed. from 15% up to 50% - implementing strategies he thinks will attract back domestic production and increase governmental income, while providing him significant influence over nations whose exports rely on American buyers.

Today we received a flood of information, which exemplifies the old adage: 'you can't see the forest for the trees,'" stated Rob Subbaraman, chief economist at Nomura Holdings Inc. "Taking a step back, Trump has mostly kept his promise regarding tariffs. At this moment, it's simply a lot of commotion.

European shares rose on upbeat Technology profits and optimistic outlooks boosting U.S. futures. However, Asian stocks fell and currencies weakened. fell to a two-month low.

Many nations have yet to establish a trading agreement, and key details are scant for individuals who possess one – including possible exceptions, financial guarantees, and potential changes on origin rules. The ambiguity and perplexity surrounding the extended implementation of Trump's new trade policy has has already driven worldwide economic expansion has already stimulated international economic development has already contributed to global financial progress has already fueled universal economic advancement has already sparked widespread economic growth globally and influenced investing decisions, despite continued market confidence.

"These agreements being rushed under time pressure—this isn’t a positive development," noted Alicia Garcia Herrero, chief economist for Asia Pacific at Natixis. The effort aims to bring nations together to prevent possible increased tariffs, though this might ultimately harm their economic stability, according to her.

In the meantime, the atmosphere of musical diplomacy between the United States and China appears positive at present. During an appearance at the White House on Wednesday, Trump stated that the U.S. will reach a "fair agreement" with China. Discussions held this week in Sweden helped build mutual trust between both parties and increased assurance regarding settling economic conflicts through dialogue, according to the official newspaper of the Chinese Communist Party. said .

Trade updates were not only affecting foreign nations. U.S. customers and local enterprises will soon experience increased expenses for deliveries, following Trump's announcement of new taxes. would apply Starting August 29, small-value shipments, or imports valued under $800. These types of deliveries have benefited consumers and retailers, including those based in China, who send goods directly.

A surprise respite for numerous Brazilian products strengthened its currency and stock market. Meanwhile, News reported Trump is scheduled to meet with Mexico's leader, Claudia Sheinbaum, on Thursday morning, causing the peso to rise.

Canadian Prime Minister Mark Carney stated on Wednesday that discussions with the U.S. might not conclude by Trump's Friday timeline. The chances of reaching a more favorable agreement became even slimmer after Trump shared on Truth Social that Canada's support for Palestinian statehood "will make it extremely difficult for us to reach a trade deal with them."

In South Korea, the 15% figure encompasses automobiles along with a $350 billion South Korean investment fund aimed at U.S. ventures covering areas like energy and shipbuilding. Similar to Japan, these U.S. investments would be managed under Trump’s guidance, according to the president. Additionally, for both funding sources, 90% of the earnings would return to the United States, stated Commerce Secretary Howard Lutnick in a message on X.

Regarding India, Trump warned of an unspecified further consequence for its acquisition of Russian energy resources, in addition to the existing 25% tax on goods imported from the country. This could endanger numerous sectors such as clothing and jewelry manufacturers.

Any action regarding Russian oil could be discussed during conversations with China, as Beijing also purchases significant amounts of Moscow's crude, which the U.S. has focused on since Russia's 2022 attack on Ukraine. Crude prices were remaining near their highest level in nearly six months on Thursday.

--Assisted by Kok Leong Chan.

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