Latest news with #US-Mexico-CanadaAgreement
New York Post
7 hours ago
- Business
- New York Post
Bessent reveals whether Trump will extend tariff deadlines for other countries after breakthrough with China
The Trump administration is 'highly likely' to extend next month's deadline for countries to agree one-for-one trade deals — so long as they are engaged in 'good-faith negotiations,' Treasury Secretary Scott Bessent told lawmakers Wednesday. With a July 8 deadline looming for dozens of nations to strike lightning-quick agreements with the White House, Rep. Don Beyer (D-Va.) pressed Bessent about whether more time will be given. 'I would say, as I have repeatedly said, that there are 18 important trading partners,' Bessent told the tax-writing House Ways and Means Committee. 'It is highly likely that [with] those countries … or trading blocs in the case of the EU, who are negotiating in good faith, we will roll the day forward to continue good faith negotiations. If someone is not negotiating, then we will not.' Advertisement On April 2, which Trump dubbed 'Liberation Day,' he unveiled a 10% baseline tariff on virtually all imports flowing into the US and a myriad of customized rates on almost every country. 3 Treasury Secretary Scott Bessent hinted that an extension of the 'Liberation Day' tariff deadline is coming. AP 3 President Trump hasn't said whether he will extend his tariff deadlines. REUTERS Advertisement Seven days alter, Trump announced a 90-day pause on those customized rates to give time to negotiate deals. The White House has since claimed that last week was the deadline for countries to furnish their best offers on trade. Trump has also imposed a few other key trade deadlines, agreeing last month to delay a 50% planned tariff against the European Union until July 9 after it was set to take effect June 1. The administration has also reached an understanding on trade with the United Kingdom and earlier Wednesday, Trump confirmed progress with China on a 'deal' for a trade negotiation framework. Advertisement Should Trump and Chinese leader Xi Jinping approve the agreement, it will revive key elements of a trade truce with Beijing brokered in Geneva last month. That framework was intended to give the two economic giants until Aug. 10 to cut a more comprehensive trade arrangement. The Geneva arrangement saw China lower its tariffs on most US goods to 10% from 125%, and the US lower its duties down from as high as 145% after the two sides penalized each other in the aftermath of 'Liberation Day.' 3 President Trump quickly paused his 'Liberation Day' tariffs to allow time for negotiations. Advertisement Under the latest arrangement, China will face up to 55% tariffs on most exports, according to Trump. In addition to the 10% baseline rate and the tariffs on China, Trump has imposed a 25% rate on imports from Canada and Mexico that aren't subject to the US-Mexico-Canada Agreement, a 25% duty on foreign steel and aluminum imports, and another 25% levy on most foreign-made vehicles.
New York Post
a day ago
- Business
- New York Post
World Bank agrees with Trump's trade complaints, urges countries to lower tariffs on US
The World Bank on Tuesday agreed with President Trump's complaint that foreign countries engage in unfair trade practices with the US and urged the nations to ease their tariffs on American exports. Top economists at the international institution, which helps finance low and middle-income countries, acknowledged that many nations do not provide reciprocal trade access to the US. 'This [situation] could not be sustained indefinitely,' the World Bank's chief economist, Indermit Gill, said during a news briefing, the Washington Post reported. 3 President Trump has long groused that US trading partners engage in unfair practices. REUTERS Gill said the World Bank has had to sharply lower its global growth forecasts because of Trump's blizzard of tariffs to try to help right the situation and amid the ongoing uncertainty over global trade. But he contended that Trump's actions were merely a response to uneven trade access between other countries and the US. Other experts at the World Bank concurred with that assessment and indicated that Europe, Japan and China should all take steps to reduce trade barriers on the US, while calling for an across-the-board rollback on tariffs on all sides. 3 World Bank's chief economist, Indermit Gill, acknowledged Tuesday that several top US trade partners have had uneven trade practices. Bloomberg via Getty Images The World Bank's updated economic forecast downgraded growth expectations for the US in 2025 from its 2.3% projection in January down to 1.4%. If that prediction comes true, it will be the lowest annual growth rate in US gross domestic product since the Great Recession, not counting the COVID-19 pandemic. The institution's forecast for China meanwhile remained steady at 4.5%, while it said global growth will slow down 0.4 percentage points to 2.3%. But there's a risk of further decline, and global growth could plunge to 1.8% if trade issues persist, the World Bank warned. 3 Trump has been particularly keen on overhauling trade relations with China's president, Xi Jinping. POOL/AFP via Getty Images 'After a succession of adverse shocks in recent years, the global economy is facing another substantial headwind, with increased trade tension and heightened policy uncertainty,' the international financial institution wrote in its new forecast. 'Against the backdrop of a deteriorating global environment, growth forecasts for 2025 have been downgraded.' Trump has imposed a 10% baseline tariff rate on virtually every country, 30% duties on imports from China and Hong Kong. 30% duties on imports from China and Hong Kong, a 25% rate on imports from Canada and Mexico that aren't subject to the US-Mexico-Canada Agreement and 25% on foreign steel and aluminum. The Congressional Budget Office has estimated that if all those tariffs implemented by May 13 were left in place, it would generate about $2.8 trillion in revenue over a 10-year period. Trump has also given countries a deadline of July 8 to cut lightning trade arrangements or else face an onslaught of his customized 'Liberation Day' tariffs.
Mint
30-05-2025
- Business
- Mint
Northern US Mayors Call for End to ‘Irrational' Trade War With Canada
Mayors in states that border Canada are calling for an end to President Donald Trump's trade war with the country, saying it has harmed businesses and workers in their communities and upended one of the world's most successful economic relationships. Andrew Ginther, mayor of Columbus, Ohio, and Bryan Barnett, mayor of Rochester Hills, Michigan, said in an interview Friday that the countries should continue to build things together and trade with each other because the partnership has been working for decades. 'We don't think that growth and prosperity for American cities comes through a prolonged, unstable, irrational and emotionally charged trade war,' said Ginther, a Democrat who is also president of the US Conference of Mayors. 'Our metro economies are based on trade and being able to export what we produce in the United States.' The two mayors were in Ottawa for a meeting of the Federation of Canadian Municipalities, the counterpart to Ginther's group. The politicians said cooperation among Canadian, American and Mexican mayors has never been stronger and at a municipal level, leaders are broadly united against tariffs. Canada and Mexico were among the first countries targeted by Trump — he imposed levies on goods that don't comply with the US-Mexico-Canada Agreement, as well as sectoral duties on steel, aluminum and automobiles, prompting Canada to retaliate with levies of its own. Both mayors' communities are hubs for auto manufacturing, which sees parts zip back and forth across the Canada-US border as vehicles are assembled. Barnett, a Republican, said the interconnected sector has been effective in driving growth for all involved. 'We have two of the strongest economies in the world because we work together,' he said. 'We're a capitalistic society that has succeeded because innovative people find great ways to make important things. And they do that with partnerships, they do that with collaborations. I want to harness that. I don't want to block it.' There is value in the president's overall goal of repatriating jobs to the US, the mayors said, and there are industries where a domestic supply chain is essential, such as computer chips. But the uncertainty caused by the chaotic tariff rollout is damaging businesses' ability to make investment and hiring decisions, they said. A recent survey of businesses in Rochester Hills found that nearly 60% have ruled out capital investment in 2025, with 30% planning to lay people off this year, Barnett said. Given that the top issue in their communities — and the issue that helped elect the president — is the cost of living, the tariffs are a misguided policy, the mayors argued. 'The uncertainty is deadly,' Ginther said. 'The cost of living's probably tough enough when you have a job. When you lose that job, that's when you have families spiral into a real desperate place.' This article was generated from an automated news agency feed without modifications to text.
Business Times
28-05-2025
- Business
- Business Times
US reciprocal tariffs could fall to 10% after talks – except for China: Citigroup chief economist
[SINGAPORE] Sky-high reciprocal tariffs may converge on the baseline rate of 10 per cent after US talks with trading partners – though not for China, which will still face higher rates, said Citigroup's global chief economist Nathan Sheets. He expects global trade to settle into an equilibrium, with a 'pretty clear idea' of this being possible in six to 12 months. Yet, these higher rates will likely remain even after the next US president takes office, he warned in an interview with The Business Times. Reciprocal tariffs, announced on Apr 2, have been paused for 90 days. By the end of the pause in July, Dr Sheets expects US talks to result in new frameworks with several trading partners, with details to be ironed out later. The US will likely lower tariffs in exchange for concessions such as lower tariffs on US goods; buying more US products; curbs on re-exports from China; and lowered non-tariff barriers. Deals have already been struck with the UK, Japan, South Korea, Saudi Arabia, Israel and Vietnam, he noted. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Mexico and Canada should enjoy even lower rates due to the US-Mexico-Canada Agreement, with 'the lion's share of imports entering with tariffs at or near zero'. But where talks fail, the average reciprocal tariff might be closer to 20 per cent. If US President Donald Trump is unhappy with how talks go, he could impose punitive tariffs above the Apr 2 rates, warned Dr Sheets. Higher tariffs for China, key sectors Unlike other partners, where the US's goal is negotiation, tariffs on China have 'absolutely' been designed in part to restrain its economy – or at least its access to technology and key US products, he said. 'But even with China, it wouldn't surprise me if over the next year or two, we did see some kind of a broader agreement negotiated.' Meanwhile, upcoming sectoral tariffs are unlikely to be as low as 10 per cent. For pharmaceuticals, the rate will likely be 25 per cent, in line with existing auto and steel and aluminium tariffs, Dr Sheets said. But for electronics, a 10 to 15 per cent rate is possible. 'Electronics is a very globally integrated industry,' he said. 'And as you start putting meaningful tariffs on inputs in the production process, you can disrupt and blow up supply chains, which can have a very kind of disruptive, challenging effect on the economy.' Electronics firms have complained to the Trump administration about its tariffs on China, which could have led to initial carve-outs for this sector, he added. Long-lasting The rest of Trump's term is unlikely to resemble the past few months – though there is no ruling out further duties, said Dr Sheets. 'You always have to be prepared that (Trump) thrives on unpredictability, or tactical ambiguity, and at any point we could get a social media post and we'll say: 'Oh my, I hadn't seen that'.' And even after Trump leaves office, the tariffs may remain. After Trump's first term, the Biden administration used Trump's tariffs to maintain pressure on China, noted Dr Sheets. Reversing them would have been seen as 'being easy on' the growing power. Furthermore, Trump's latest tariffs are expected to raise 'several hundred billion dollars a year' in revenue. So, if tariffs are 'not doing demonstrable harm' – with US growth and inflation 'performing well' – 'it might be hard to roll them back too aggressively because of their implications for fiscal policy', Dr Sheets said. For now, the centrality of the US dollar and US markets have not been meaningfully threatened, he added. The US remains a major market, even as trading partners have attempted to diversify, trade in local currencies and otherwise reduce their dependence on it. If reserve managers move more swiftly away from the US dollar, or global investors' appetites for US assets wane meaningfully, this could suggest a broader shift – but could also be cyclical '(Trump's) got, essentially, 44 more months to go,' he said. 'And we've got to wait and see.'
Yahoo
17-05-2025
- Business
- Yahoo
Which Trump tariffs are active, which are paused and what's next?
Over the last few months, Donald Trump has introduced a confusing and evolving slate of tariffs against specific countries and industries that the president has deemed as threats to US industry. Many of his harshest tariffs have been paused, and some exemptions have been made, but a handful of tariffs are still in place. Trump has continued to threaten more of them, though the future of the president's trade war remains unclear. Here's what we know so far about the status of US tariffs on imported goods. *** Most of the tariffs currently in place are pared-down versions of what they were when Trump first proposed them. For example, Trump had threatened to place 25% tariffs on all goods from Canada and Mexico. He eventually made an exception for goods covered under the US-Mexico-Canada Agreement (USMCA) he signed in 2018, which covers the majority of imports from both countries. 10% universal tariff Went into effect on 5 April 25% on cars and auto parts (with some exceptions)Went into effect on 3 May 30% tariff on Chinese imports (with some exceptions)Went into effect on 13 May 25% tariffs on goods from Canada and Mexico, not covered in the USMCA Went into effect on 4 March *** Trump has paused his highest tariffs, including 145% tariffs on Chinese imports and a slate of so-called 'reciprocal tariffs' that the president was planning to implement against more than 50 countries. US stock markets jumped after Trump paused these tariffs. 'Reciprocal' tariffs, until 8 JulyPaused on 9 April Higher tariffs on Chinese goods, until 12 AugustPaused on 13 May *** The White House has made key exemptions for tariffs against Canada, Mexico and China that cover goods that are heavily imported from those countries. Goods from Canada and Mexico that are covered in the USMCA, including auto partsExempted on 2 April Tariffs on smartphones, computers and other electronics imported from ChinaExempted on 12 April *** Trump continues to threaten more tariffs on specific industries, though it is unclear if and when the president will implement tariffs on these industries. Pharmaceuticals Semiconductors Lumber Copper Movies produced outside the US
