U.S. President Donald Trump on Thursday justified his sweeping use of tariffs, asserting they were working to restore American prosperity as governments around the globe scrambled to finalize trade deals with Washington before an impending August 1 deadline.
"Tariffs are making America GREAT & RICH Again," Trump posted on his Truth Social site.
"ONE YEAR AGO, AMERICA WAS A DEAD COUNTRY, NOW IT IS THE 'HOTTEST' COUNTRY ANYWHERE IN THE WORLD," he added.
Trump's remarks followed a day after he put into effect a new batch of tariffs that both punished and rewarded major trading partners, triggering renewed volatility on global markets.
South Korea was able to strike a last-minute deal with Washington that won it a 15% tariff on its exports—significantly lower than the 25% threatened by the U.S. president earlier.
Brazil, on the other hand, was struck by a drastic 50% duty, while India was hit with a 25% duty on its products. Trump also threatened that Canada would be economically punished following its proposal to promote Palestinian statehood at the next United Nations General Assembly.
The 15 percent tariff for South Korea, a close U.S. security partner, was in line with rates agreed with Japan and the European Union. Trump also said that Seoul had committed to investing $350 billion in the American economy while buying $100 billion in liquefied natural gas and other American energy products.
In line with the presidential office of South Korea, the country's significant automotive export industry will also be hit by the 15% tariff.
At the same time, Trump imposed draconian trade penalties on Brazil and sanctions against the judge presiding over the trial of Jair Bolsonaro, the far-right ex-president of Brazil, who is accused of trying to orchestrate a coup.
The imposition of tariffs on Brazil was delayed until August 6, and some major exports—like orange juice, civil aircraft, iron ore, and some energy products—were exempted from the new tariffs.
Trump accused Brazilian Supreme Court Justice Alexandre de Moraes of presiding over a politically driven campaign against Bolsonaro, calling it a "witch hunt."
Brazil's president, Luiz Inácio Lula da Silva, reacted by promising to protect his nation's sovereignty and the Brazilian people's will.
India was also hit with a 25% tariff that will go into effect Friday. While the new tariff was trimmed slightly from previous threats, it came after failed trade talks between Washington and New Delhi. Trump also ripped into India's relationship with Russia, saying there would be additional penalties for its ongoing purchases of Russian defense and energy products.
"I don't care what India does with Russia. They can take their dead economies down together, for all I care," Trump posted on Truth Social.
"We have done very little business with India, their Tariffs are too high, one of the highest in the World," he added.
Tensions also heightened with Canada following Prime Minister Mark Carney's endorsement of Palestinian statehood. Trump indicated that the action posed the risk of undermining trade relations between the two neighboring nations.
"Wow! Canada has just declared that it is supporting statehood for Palestine," Trump tweeted. "That will make it very difficult for us to make a Trade Deal with them."
New Tariff Orders and Global Responses
Aside from the targeted countries, Trump issued an executive order on Wednesday imposing a 50% tariff on some copper products. He also removed the exemption of low-value foreign shipments from tariffs. Some relief was nevertheless given to industry stakeholders, as the order did not cover raw copper materials like ores, concentrates, and cathodes.
With the clock ticking, U.S. Commerce Secretary Howard Lutnick told Fox News that deals had been finalized with Cambodia and Thailand, but he provided no further details.
Long-planned in April, the tariff increases were part of a broader effort imposing at least a 10% tariff on most of the world's major trade partners on grounds of chronic unfair practices. The rates were to rise for several economies, including the EU and Japan, but had been postponed twice amid market volatility.
Trump repeated on Wednesday that extensions after August 1 would not be granted.
So far, the U.S. has completed preliminary trade agreements with Britain, the EU, Vietnam, Japan, Indonesia, the Philippines, and South Korea, all of which won better terms.
Whereas previous years have witnessed the U.S. and China play tit-for-tat tariff games, both sides are now attempting to stabilize the relationship and keep tariffs lower.
Even as Trump expresses optimism regarding the ability of his tariff policy to increase revenue, numerous economists warn that such actions would drive inflation upward and exert stress on the general economic growth.
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