U.S. President Donald Trump announced more trade deals this week as his deadline for Canada and the United States to negotiate a new economic and security agreement draws closer.
Trump boasted about deals with Japan and the Philippines in posts on social media Wednesday morning, and claimed he will only consider lowering tariff rates if countries open their markets to the United States.
"I will always give up Tariff points if I can get major countries to OPEN THEIR MARKETS TO THE USA," the president posted. "Another great power of Tariffs. Without them, it would be impossible to get countries to OPEN UP!!! ALWAYS, ZERO TARIFFS TO AMERICA!!!"
Many details of the loose frameworks for the agreements with Japan and the Philippines remained unclear after the president's initial announcements Tuesday.
Japan will still be hit with 15 per cent tariffs — down from Trump's proposed 25 per cent duties — and the Philippines will be hit with 19 per cent levies — slightly lower than the threatened 20 per cent.
In return, the president said both countries would open their markets to American goods. The president also said Japan would invest $550 billion in the U.S. “at my direction."
The White House on Tuesday also provided more information on the framework of the deal with Indonesia that Trump announced earlier this month. That agreement will see Indonesia hit with a 19 per cent tariff, down from Trump's proposed 32 per cent levy.
Trump previously announced frameworks for deals with the United Kingdom and Vietnam.
This week's flurry of announcements come at an important time for Trump — just over a week before his latest tariff deadline and as pressure mounts on many of America's largest trading partners.
Trump has sent letters to multiple nations, including Canada, saying that if no deal is made by Aug. 1, he will impose high tariffs on imports to the United States.
Trump’s letter to Prime Minister Mark Carney threatened Canada with 35 per cent tariffs but the White House has said the levies will not be applied to imports compliant with the Canada-U.S.-Mexico Agreement on trade.
On Tuesday, Carney confirmed Canada-U.S. Trade Minister Dominic LeBlanc is in Washington this week but downplayed expectations of a deal by Trump's deadline.
"They're complex negotiations and we'll use all the time that's necessary," Carney told reporters after meeting with premiers at the Council of the Federation gathering in Huntsville, Ont.
Carney said the government will agree to a deal "if there's one on the table that is in the best interests of Canadians."
Countries around the world are watching for details of the deals. It remains unclear whether striking an agreement with the U.S. now would mean a reprieve from Trump's separate import taxes on steel, aluminum and automobiles, which operate outside his global tariff regime. Duties on copper are also set to be introduced on Aug. 1.
Trump has launched multiple trade investigations under Section 232 of the Trade Expansion Act of 1962 into other key sectors — investigations that may lead to tariffs on things like semiconductors and lumber at some point in the future.
Picture Courtesy: AP Photo/Alex Brandon
