After a stormy week, Friday has finally arrived, the day the US president will officially announce them that will impose on their main commercial partners who have not yet closed an agreement with them. The day is obviously not accidental. After the closure of markets everyone will be waiting for what will happen on Monday.
Weeks and months of preparations by Trump end today
Trump’s moves for about two weeks has revolved around the preparation for exactly what the executive decree will be signed on duties against US trade partners. Almost all of his placements, even for the war in Gaza and Ukraine, contained a “taste” of customs duties, and Russia and those who deal with it with additional duties if Moscow does not do everything for a truce agreement until August 8.
The agreements and duties we know
Until last night (Greek time), the US president closed agreements, with the latest with Mexico. The deal extends 25% of duties to some products from Mexico for 90 days, so any increase in 30% that Trump would like to postpone until then.
On Wednesday, it announced the agreement with South Korea on 15% duties and commitment to Korean investments of $ 350 billion in the US. In addition, he signed a decree to increase 40% of Brazil’s tariffs on products, raising the rate to 50%, and announced 25% for India plus some additional penalty because he buys Russian oil.
On Sunday, it announced the agreement with the EU for 15% duties plus $ 857 billion in US energy, $ 685 billion in investment. In the past few days he had announced an agreement with Japan for 15% duties and $ 550 billion in the US.
The previous day he had announced an agreement with the Philippines on 19%, while agreements with Indonesia had been preceded by Indonesia on 19%duties, with Vietnam for 20%and Spring with Britain Agreement for 10%.
The special case of China
Talks with China have a special place in Trump’s program to impose duties, which were also held in Stockholm this week. Finance Minister Scott Bessed, who was involved in the negotiations, said he and US spokesman Jameson Green would inform Trump about what was discussed and he would make a decision on whether the existing truce would be prolonged by the existing truce. announcements are expected to be repeated).
The consequences of duties and the Trump preventive threats
With all of them now closed, the debate is already focusing on the consequences of all this, as well as what is expected to be announced. For example, according to the Yale Budget Lab, an independent Center for Political Research, duties abroad could cost US households on average $ 2,400 in 2025, due to the highest prices of imported goods.
At the same time, industries depending on imports, such as those of electronic components and species, pharmaceuticals and clothing companies, may face new upheavals in supply chains, as companies will try to absorb costs or. Pharmaceuticals had already announced that drug prices were expected to rise sharply in the coming days, of course announcements that they did not like the US president at all, who was in a hurry to threaten them late last night (Greece). In a letter he made it clear that if they decide to raise their prices, then his government would use all the tools he has to prevent “violent bloating of drug prices”.
Risk and uncertainty
This move Trump shows that he already seems to be pressured to manage the impact he knows that his decisions on imposing duties will have. The size of the risk it takes, no matter how much he considers an enforcement tool and less a meaningful economic policy tool, it is better understood by the fact that he announced billions of investment in the US by their commercial partners (who are supposed to be in charge).
The uncertainty created has another impact. The countries that Trump “squeezed” to impose them are already appearing to look for alternatives beyond trade with the US. For example, China and the EU have been approaching movements for months, as well as the EU with Britain, Canada, India and Southeast Asia countries (the presence of Macron at a security meeting in the region). Brazil and Mexico also make moves both with each other and in other … directions.
‘A Great Day for America’
Nevertheless, the US president does not seem to be interested in all this at least today, the day he himself in one of his many posts on Truth Social had predicted: “The deadline of August first is strong and will not be extended. A big day for America !!! “.
