It has probably never been more important to make a deal with the U.S., and it has probably never been more difficult either.
What happened: In the newest development of an escalating global trade war, the Trump administration says it will be sending out “take it or leave it” trade offers to 12 countries and outlining the various tariffs they will face on goods exported to the U.S. if they don’t buy in.
Catch-up: In April, President Donald Trump imposed minimum tariffs of 10% on most of its trading partners before pausing for three months to ‘secure deals’ with individual countries. The pause is up this week, but tariffs as high as 70% will only go into effect on August 1.
- These tariffs are separate from some already placed on Canada, Mexico and China, including an industry-specific tariff now at 50% on steel, aluminum and cars.
Why it matters: If the U.S. moves ahead, some countries will respond with counter tariffs, potentially disrupting supply chains and triggering a financial market meltdown. As Ottawa weighs counter tariffs, affected companies in the private sector may be offered support.
Big picture: Britain and Vietnam have inked deals with the U.S., and China has agreed to a potential truce, but the conditions for negotiators are less than ideal given that it’s not clear whether these tariffs are legal yet, or whether the U.S. will be rolling out more this year.—SB