Trump escalates trade war with Canada following Palestine stance
Good morning and welcome to our rolling coverage of US politics as Donald Trump intensified his trade war with Canada a day ahead of his 1 August deadline for a tariff agreement.
The president posted on his Truth Social platform:
Wow! Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!
Trump is set to impose a 35% tariff on all Canadian goods not covered by the US-Mexico-Canada trade agreement if the two countries do not reach an agreement by the deadline.
Canadian prime minister Mark Carney previously said tariff negotiations with Washington had been constructive, but the talks may not conclude by the deadline. Canada is the second-largest US trading partner after Mexico, and the largest buyer of US exports.
We’ll be bringing you all the developments on this story today. In other news:
Key events
The US tariff rate on Malaysian goods will be announced on Friday, Malaysian premier Anwar Ibrahim said on Thursday after speaking to US president Donald Trump.
Malaysia is facing a 25% tariff on its exports to the United States unless a deal with Washington is reached by Friday.
The two countries have held multiple rounds of talks, with Malaysia’s trade minister saying several sticking points remained, particularly on non-trade barriers.
Anwar said he discussed tariffs “in the spirit and principle of free trade” during a phone conversation with Trump early on Thursday.
President Donald Trump said on Wednesday the US will charge a 15% tariff on imports from South Korea, down from a threatened 25%, as part of a deal that eases tensions with a top-10 trading partner and key Asian ally.
South Korea also agreed to invest $350 billion in the United States in projects selected by Trump and to purchase energy products worth $100 billion, Reuters reported.
The arrangement, announced after Trump met with Korean officials at the White House, came during a blizzard of trade policy announcements. Many countries are rushing to cut deals ahead of 1 August, when Trump has promised higher tariffs will kick in.
“I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea,” Trump wrote on Truth Social.
The negotiations were an early test for South Korean president Lee Jae Myung, who took office in June after a snap election. He said the deal eliminated uncertainty and set US tariffs lower than or at the same level as major competitors.
“We have crossed a big hurdle,” Lee said in a Facebook post. Trump said Lee would visit the White House “within the next two weeks” for his first meeting with the U.S. president.
South Korea will accept American products, including autos and agricultural goods into its markets and impose no import duties on them, Trump added.
South Korea’s top officials said the country’s rice and beef markets would not be opened further, and discussions over US demands on food regulations continue.
Trump escalates trade war with Canada following Palestine stance
Good morning and welcome to our rolling coverage of US politics as Donald Trump intensified his trade war with Canada a day ahead of his 1 August deadline for a tariff agreement.
The president posted on his Truth Social platform:
Wow! Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!
Trump is set to impose a 35% tariff on all Canadian goods not covered by the US-Mexico-Canada trade agreement if the two countries do not reach an agreement by the deadline.
Canadian prime minister Mark Carney previously said tariff negotiations with Washington had been constructive, but the talks may not conclude by the deadline. Canada is the second-largest US trading partner after Mexico, and the largest buyer of US exports.
We’ll be bringing you all the developments on this story today. In other news:
