US President Donald Trump has announced new tariffs on goods from the European Union and Mexico, further escalating tensions with key trading partners. The move comes after weeks of sudden shifts in his trade policies, leaving countries struggling to navigate the unpredictable landscape.
Trump’s recent actions have made it challenging for nations to engage in meaningful negotiations, according to Wendy Cutler, a former US trade negotiator. “The unpredictability and assertiveness of Trump’s trade policies are growing,” she said. “It’s hard for trading partners to know where they stand with him on any given day.”
Canada is among the countries facing increased tariffs under Trump’s new policy. The 35% tariff effective August 1, announced without warning, has put a strain on diplomatic relations. Canada had agreed to drop its digital services tax just weeks prior, but Trump has refused to back down.
The sudden shift in policies is not limited to Canada. Brazil faces a 50% import tax due to Trump’s perceived mistreatment of former President Jair Bolsonaro, while Thailand and Vietnam have also been targeted with tariffs.
Despite the challenges, some countries see opportunities in navigating these complex trade dynamics. “These countries need the US,” said Matthew Goodman, director of the Council on Foreign Relations’ Center for Geoeconomic Studies. “They need our market.”
However, as nations look to avoid appearing vulnerable, they may be forced to consider alternative trade partnerships and strategies. William Reinsch, a former US trade official, notes that Trump’s focus is often on winning rather than reaching meaningful agreements. “The trick becomes: How do we let him win in a way that allows us to make the least damaging concessions?”
Source: https://apnews.com/article/trump-tariffs-canada-brazil-vietnam-trade-08005b1aedc77736852a90ca3d7c85ae