US President Donald Trump announced 50% tariffs on Brazil on Wednesday, linking the move to how the country is treating its former president, Jair Bolsonaro. There has been debate over how Trump’s tariffs are often driven by various personal reasons, and not just economic ones. Trump skipped announcing the tariffs on Brazil via the letter, specifically tying the new tariffs to Bolsonaro’s ongoing trial. Bolsonaro is accused of trying to overturn the results of Brazil’s 2022 presidential election.
Trump, who has called Bolsonaro a friend, had hosted him at his Mar-a-Lago resort back in 2020, when both were in office. In a post on Truth Social, Trump wrote: “This Trial should not be taking place. It is a Witch Hunt that should end IMMEDIATELY!” Trump himself was charged in 2023 for trying to change the outcome of the 2020 US election.
The US Prez issued tariff letters to six more countries on Wednesday. He imposed 30% tariffs on Libya, Iraq, Sri Lanka, and Algeria and slapped 25% tariffs on Moldova and Brunei. The POTUS has already pressurised 14 trading partners — including powerhouse US suppliers South Korea and Japan — with tariff letters earlier this week. Levies ranging from 25% to 40% will now take effect from August 1. He also broadened the scope of the ongoing trade war with a 50% tariff on imported copper. Trump has also teased levies up to 200% on pharmaceuticals and vowed to introduce long-threatened tariffs on semiconductors. The US President also warned on Tuesday that the BRICS nations — including India — would face a 10% tariff “pretty soon”.
The POTUS is also set to take the final call on India-US trade deal soon. According to CNBC, India has already presented a final ‘decent offer’ from its side, which will be reviewed by the US President now. According to the report, India’s proposal covers goods trade worth around $150 billion to $200 billion between the two countries. Now, it’s up to US officials to decide whether they want to continue negotiations or move forward with a deal as it stands. India is not expected to offer any more concessions at this point.
Trump had earlier said that the United States is close to finalising a trade deal with India. This move is part of a larger effort to change global trade ties and use tariffs as a tool to increase US influence. During a private dinner with Israeli President Benjamin Netanyahu on Monday, Trump told reporters that the US has already reached trade agreements with countries like the United Kingdom and China. He added that India could be next. “As far as I’m concerned, we’re done with sending out letters to various countries telling them how much tariffs they have to pay. Some will maybe adjust a little bit, depending if they have a you know, cause,” Trump said.
Trump delays tariffs on countries till August
Trump has delayed imposing higher tariffs on goods coming into the US from 14 countries, including Japan and South Korea. The development comes just as a 90-day pause on some of the toughest import taxes, put in place by the White House, was about to expire this week. Trump repeated his warning that a 25% tariff could still be placed on goods from Japan and South Korea. He also shared letters to leaders of several countries, saying new tariffs will take effect from August 1. The higher tariffs were supposed to start on July 9, but were earlier put on hold while US officials tried to make trade agreements.
Trump shared tariff letters via social media on Monday that were sent to leaders of the 14 countries. He explained his new tariff plans in them and said the rates could go up or down, depending on how each country’s relationship with the US develops. Most of the tariff amounts in the letters were similar to what Trump had mentioned in April, during what he called the “Liberation Day” announcement, when he threatened new taxes on goods from many countries. Although highest tariff rate of 40% has been imposed on Myanmar and the Lao People’s Democratic Republic.
Trump says the goal of these tariffs is to protect American companies from foreign competition and to support US factories and jobs. However, many economists believe these steps will make things more expensive for American buyers and reduce trade.
Source: FINANCIAL EXPRESS
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