Latest news with #WorldTradeOrganization
Economic Times
an hour ago
- Business
- Economic Times
Trump raises tariff on Canadian goods to 35%, escalating US-Canada trade tensions
Trump raises tariff on Canadian goods to 35% U.S. President Donald Trump has signed an executive order increasing tariffs on Canadian imports from 25% to 35% on all products not covered by the U.S.-Mexico-Canada trade agreement, effective August 1, 2025, according to a White House announcement early Thursday. Goods that are routed through a third country to avoid the new tariffs will face a transshipment levy of 40%, as specified in a White House fact sheet The White House justified the tariff hike by citing what it called Canada's 'continued inaction and retaliation' in bilateral disputes. In response, President Trump asserted, 'We have no choice but to ensure fairness and the protection of American industries,' signaling possible further escalation if Canada retaliates. This marks the highest broad-based tariff the U.S. has levied on Canadian goods in modern history. A previous rate of 25% had already been in effect across a range of products, with sector-specific tariffs as high as 50% on aluminum and steel. The 35% duty now applies broadly to Canadian exports—affecting industries from automobiles and agriculture to metals—which collectively account for about 75% of Canada's export market. The announcement also coincides with contentious diplomatic developments. On the eve of the deadline, Canadian Prime Minister Mark Carney declared Canada's intent to recognize Palestine as a sovereign state, pending elections and specific criteria. President Trump publicly linked this decision to the trade dispute, writing on his Truth Social account, 'That make it hard for [us] to make trade deal with them,' and firmly establishing an August 1 deadline for new tariffs if no agreement was 2024, Canada was the second-largest U.S. trading partner, with $761.8 billion in two-way trade. Economists caution that the new tariffs could destabilize supply chains already strained by previous rounds of duties and post-pandemic disruptions, triggering inflationary pressures and threatening jobs on both sides of the of Friday morning, Canada has not announced countermeasures but government officials are reportedly considering a range of responses. The Trudeau administration, ousted from office in 2024, had previously favored strategic retaliatory tariffs and appeals through the World Trade Organization. With little immediate prospect for resolution, economists and trade attorneys expect a turbulent period for U.S.-Canada commerce and ongoing uncertainty for multinational businesses.
Time of India
an hour ago
- Business
- Time of India
Trump raises tariff on Canadian goods to 35%, escalating US-Canada trade tensions
Donald Trump, the U.S. President, has increased tariffs on Canadian imports. The new tariffs will be 35% on products not under the USMCA trade agreement. This will be effective from August 1, 2025. Goods rerouted to avoid tariffs will face a 40% levy. The U.S. cites Canada's inaction as the reason. Canada was the second-largest U.S. trading partner in 2024. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads U.S. President Donald Trump has signed an executive order increasing tariffs on Canadian imports from 25% to 35% on all products not covered by the U.S.-Mexico-Canada trade agreement, effective August 1, 2025, according to a White House announcement early that are routed through a third country to avoid the new tariffs will face a transshipment levy of 40%, as specified in a White House fact sheetThe White House justified the tariff hike by citing what it called Canada 's 'continued inaction and retaliation' in bilateral disputes. In response, President Trump asserted, 'We have no choice but to ensure fairness and the protection of American industries,' signaling possible further escalation if Canada marks the highest broad-based tariff the U.S. has levied on Canadian goods in modern history. A previous rate of 25% had already been in effect across a range of products, with sector-specific tariffs as high as 50% on aluminum and steel. The 35% duty now applies broadly to Canadian export s—affecting industries from automobiles and agriculture to metals—which collectively account for about 75% of Canada's export announcement also coincides with contentious diplomatic developments. On the eve of the deadline, Canadian Prime Minister Mark Carney declared Canada's intent to recognize Palestine as a sovereign state, pending elections and specific Trump publicly linked this decision to the trade dispute, writing on his Truth Social account, 'That make it hard for [us] to make trade deal with them,' and firmly establishing an August 1 deadline for new tariffs if no agreement was 2024, Canada was the second-largest U.S. trading partner, with $761.8 billion in two-way trade. Economists caution that the new tariffs could destabilize supply chains already strained by previous rounds of duties and post-pandemic disruptions, triggering inflationary pressures and threatening jobs on both sides of the of Friday morning, Canada has not announced countermeasures but government officials are reportedly considering a range of responses. The Trudeau administration, ousted from office in 2024, had previously favored strategic retaliatory tariffs and appeals through the World Trade Organization. With little immediate prospect for resolution, economists and trade attorneys expect a turbulent period for U.S.-Canada commerce and ongoing uncertainty for multinational businesses.
Deccan Herald
6 hours ago
- Business
- Deccan Herald
India mulls boosting US imports to placate Trump after shock 25% tariff
India is weighing options to placate the White House, including boosting US imports, and has ruled out immediate retaliation to President Donald Trump's surprise 25 per cent tariff threat, according to people familiar with the matter. Officials in New Delhi were shocked and disappointed by Trump's announcement on Wednesday, the people said, asking not to be identified as the discussions are private. The government is keen to keep bilateral trade talks on track and is exploring ways to increase purchases from its largest trading partner, they said. India is considering ramping up its natural gas purchases from the US, and increase imports of communication equipment and gold, the people said. They added that boosting these purchases could help narrow India's trade surplus with the US over the next three to four years. No defense purchases are being planned, they in New Delhi are not considering any immediate retaliation to Trump's tariff threat, the people said. The government has already reserved its right at the World Trade Organization to retaliate against the higher US duties on steel and automobiles at a time of its Commerce Minister Piyush Goyal — who just days earlier voiced confidence in securing a trade deal with Washington — told Parliament on Thursday that the government is now engaging with exporters to assess the impact of Trump's tariffs. 'The implications of the recent developments are being examined,' Goyal said, as the opposition staged loud protests. He added that his ministry is collecting feedback from exporters and industry groups, and will take 'all necessary steps to secure and advance our national interest.'.It remains unclear whether New Delhi's moves will soften Trump's stance. Although the US leader and Prime Minister Narendra Modi have shared friendly ties and until recently sounded optimistic about finalizing a trade deal, Trump on Wednesday criticized India for its high tariffs and described its trade barriers as 'strenuous and obnoxious.' He also threatened to impose penalties on India for purchasing Russian energy and weapons. .Trump's tariff shock puts Team Modi in a tight president later told reporters that Washington and New Delhi were still in talks and that a final decision on the tariff would be made by the end of the week. Just a few hours later, however, he posted on Truth Social, saying, 'I don't care what India does with Russia,' and referred to both nations as 'dead economies.'The US had a trade deficit with India of about $43 billion last year, the 11th largest and well below countries like Vietnam, which stood at about $121 billion, according to figures from the International Monetary Fund. Trump earlier this month announced a tariff rate of 20% for Treasury Secretary Scott Bessent on Thursday blamed India for slowing trade negotiations, telling CNBC that the 'whole trade team has been frustrated' with New Delhi. He added that the next steps are now up to India, and criticized the South Asian nation for not being a 'great global actor,' citing its close ties with government said Wednesday it remains committed to a trade deal that's 'mutually beneficial' and highlighted the need to protect its farmers and small businesses. Both sides had already agreed to conclude a bilateral trade deal by the fall of this year, with officials in New Delhi saying earlier this week that negotiators from the US would be visiting the country to continue the are uncertain about how seriously to take Trump's remarks. 'Trump being Trump, we can't be sure,' said Abhijit Das, a New Delhi based international trade expert. 'This could be a negotiating ploy as he did something similar with the EU.' The US leader pressured the European Union into a trade deal by initially threatening 30% tariffs, then scaling them back to 15%.India's currency and stocks slid on Thursday, although the declines were relatively muted. The rupee fell as much as 0.4% to 87.7375 per dollar before recovering slightly to trade 0.2% lower at 10:50 a.m. local time. Meanwhile, the benchmark NSE Nifty 50 Index was down 0.5%, after having dropped as much as 0.9% earlier in the considering a boost in purchases of American goods, the Modi government is unlikely to buy additional defense equipments from the US, a key demand from Trump, officials familiar with the matter said, asking not to be identified because the discussions are has informed the US that it's not keen to buy the F-35 stealth fighter jets, they said. During Modi's visit to the White House in February, Trump had offered to sell the expensive warplanes to India. However, the Modi government is more interested in a partnership focused on jointly designing and manufacturing defense equipments domestically, the officials Ministry of Defence in India didn't respond to a request for recent remarks risk further straining already fragile US-India ties. The US president has repeatedly said that his use of trade pressure helped secure a ceasefire that ended a four-day armed conflict between India and Pakistan in May — a claim strongly denied by Modi and senior officials in New in February, when relations between the two leaders were notably warm, Modi extended an invitation to Trump to visit India. New Delhi is expected to host a leaders summit of the Quadrilateral Security Dialogue, or Quad — which comprises the US, Japan, India and Australia — later this year. 'India is not in a position to promise huge import of energy from the US. Also, we are not in a position to talk about huge Indian investment taking place in the US,' said Ajay Dua, a former commerce ministry official, in an interview with Bloomberg TV, adding that the country now needs to be a 'little more accommodating in the ongoing negotiations.'
New Indian Express
11 hours ago
- Business
- New Indian Express
India to take all steps to protect national interest: Goyal on US tariff; 'non-statement,' slams Congress
The two countries have been negotiating a bilateral trade agreement (BTA) since March with an aim to more than double the bilateral trade in goods and services to USD 500 billion by 2030 from the current USD 191 billion. So far five rounds of talks have been completed. For the sixth round, the US team is visiting India from August 25. They are aiming to conclude the first phase of the agreement by fall (October-November) this year. The two sides are also looking at an interim trade deal before the BTA. The US wants duty concessions on certain industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, and agri goods, dairy items, apples, tree nuts, and genetically modified crops. On the other hand, India is seeking the removal of additional tariffs. It is also seeking the easing of tariffs on steel and aluminium (50 per cent) and the auto (25 per cent) sectors. Against these, India has reserved its right under the WTO (World Trade Organization) norms to impose retaliatory duties. The country is also seeking duty concessions for labour-intensive sectors, such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas in the proposed trade pact. When asked about the implications of the tariff announcement on ongoing negotiations for the pact, sources said the next round of talks are scheduled for August. "Let us wait and watch how things evolves. The ball is in the US court," said one of the sources. On the quantum of penalty and the structure of the 25 per cent tariff, they said: "There is no clarity on that. we are waiting for the executive order of the US on this for the clarity." US President Donald Trump is "frustrated" with the lack of progress on trade talks with India and feels that the 25 per cent tariff imposed on the country will "address and remedy" the situation, the White House economic adviser suggested on Wednesday. The commerce minister also said that in just over a decade, India has rapidly transformed from being one of the fragile five to the fastest growing major economy in the world and it is also widely expected that India will become the third largest economy in a few years. Today, he said, international institutions and economists see India as the bright spot in the global economy as the country is contributing to almost 16 per cent of global growth. Reacting to Goyal's remarks, Congress general secretary in-charge communications Jairam Ramesh called it a "non-statement." "Today the Commerce Minister made a non-statement on President Trump and the US tariff issue in both Houses of the Parliament. All he engaged in was totally misplaced self-congratulation," he said. The real issues thrown up by the failure to clinch a trade deal with the US, the imposition of a 25 per cent tariff on Indian imports by the US, and additional penalties for engaging in trade with Russia and Iran were hardly touched upon, the Congress leader said.
Economic Times
18 hours ago
- Business
- Economic Times
Trump gets his way on tariffs, but global trade system intact for now
President Donald Trump has succeeded in strong-arming nations to accept higher tariffs on US exports, yet for now experts see little threat to the postwar trend of lower duties in the pursuit of greater wealth all around. Since World War II, most politicians and economists view free trade as a pillar of globalisation, enshrined in the 1947 signing of the GATT accord. It was the precursor to the World Trade Organization, which now has 166 members and covers 98 percent of global commerce."What we've learned in the postwar is that lower tariffs are better for prosperity of your own country," said Richard Baldwin, a professor at the IMD Business School in Switzerland."And it's also good if other countries lower their tariffs, so we have a vibrant international economy," Baldwin, who was a member of US president George Bush's Council of Economic Advisors, told AFP. Trump however has embarked on a punishing trade war, claiming that deficits with other nations show they are "ripping off" the United has recently landed accords with Japan, the Philippines, Indonesia and, most importantly, the European dozens of other nations, US "reciprocal" tariffs are to jump from 10 percent to various steeper levels come August 1, including powerhouse economies such as South Korea, India and Taiwan."To me, the most beautiful word in the dictionary is 'tariff'," Trump repeatedly said during the 2024 election campaign that returned him to the headline figures, many economists expect the fallout for the global trade system overall to be importers may well decide to procure more from American producers as the tariffs are applied, or pass along the higher costs to consumers. "That won't have a systemic impact" outside the United States, Pascal Lamy, a former WTO chief, told AFP, calling the tariffs a "Pyrrhic victory" for Trump. He noted that Trump is targeting only the US deficits for goods and not services, "the part of global trade that is increasing the fastest"."You need to change your outlook when it comes to international trade," Lamy said, adding that "Donald Trump has a medieval view" of the instead of making a country more prosperous, the accepted economic wisdom is that by making goods more expensive, tariffs weigh on economic growth for everyone involved."Putting up your own tariffs is not a way to make yourself richer -- that's something that people have given up on many years ago," Baldwin said."Trump has not screwed up the entire world trading system yet because the rest of the world hasn't changed their opinion as to whether trade is good or bad," he said."And generally speaking, it's good."Global trade has risen sharply in recent decades, totalling nearly $24 trillion in 2023, according to WTO imports represent just 13 percent of overall imports -- meaning the vast majority of international commerce will not be directly affected by Trump's levies."It's significant, but it's only a small part of imports worldwide, and the rest of the world still wants the system of engagement and interdependence to work," said Elvire Fabry, a specialist in geopolitical economics at the Jacques Delors countries have moved in recent years to forge new trade deals, a trend Trump's tariffs blitz could March, Japan, South Korea and China pledged to speed up negotiations on an accord, while Brazil's President Luiz Inacio Lula da Silva has called for a deal between the Mercosur Latin America bloc and European Union has also signed a free-trade deal with Mercosur, though its ratification has been held up, in particular by France over concerns about unfair agriculture EU has also relaunched efforts to secure a deal with Malaysia and countries in Central April, the WTO said world merchandise trade would fall 0.2 percent this year before a "modest" recovery to growth of 2.5 percent in those forecasts took into account only the tariffs Trump had announced up to then -- not the more severe levels he has threatened to put in place starting August 1 for countries that have not signed deals with Washington.
