Trump orders new tariffs - but they are still delayed
Updated 09.34 | Published 01.18
Trump had set his deadline for today.
Hours before midnight, he released a list of the new tariffs.
Then it turned out that they will come into effect - next week.
On April 2, on what he has dubbed "Liberation Day", Donald Trump held up his posters in the White House Rose Garden. On the posters, he listed the punitive tariffs the US intended to impose on the rest of the world - country by country.
A week later, on April 9, he announced that the increases would be paused for 90 days. He then opened the negotiations that have since led to trade agreements at breakneck speed.
July 9 would have been the day for the tariff hike – but then Trump extended the pause again. He himself set a new deadline for today, August 1.
At midnight US Eastern Time – 06:00 in Sweden – the tariff increases would take effect.
That is why the world held its breath on Thursday evening waiting for new information from Trump.
And they came.
New orders from Trump
A few hours before the deadline, he signed two presidential orders on new tariffs. One was specifically aimed at Kanada, which will see its tariff rate increased from 25 to 35 percent on goods not already covered by an existing tripartite agreement with the United States and Mexico.
The second order applied to a majority of the countries on the “Liberation Day” billboards, 68 countries plus the EU. Much was already known – for example, that the EU and Japan will receive tariffs of 15 percent after the agreements announced last week. vtalen som offentliggjordes förra veckan. This decision is what will apply to Sweden.
However, the new decision was regarding goods that are shipped to the United States via repackaging in a third country to avoid tariffs. For these, the tariff rate will be increased to 40 percent.
But the biggest news was in the fine print: Only Canada will receive its new tariffs today. For the other countries covered by Trump’s order, they will come into effect first
The American media was completely caught off guard and had to continuously correct their initial reports about when the tariffs would actually come into effect.
A senior source in the White House explained to the Wall Street Journal that the delay is because the customs authority needs time to prepare the logistics.
At the same time, it opens up in practice for another week of negotiations and new agreements. Taiwan, which according to the decision will receive a 20 percent tariff, immediately grabbed at straws.
- The government will continue to strive for a reasonable tariff rate and complete the final steps in the tariff negotiations, said President Lai Ching-Te.
They are hit hardest
China and Mexico are not covered by Trump's decision last night. Earlier on Thursday, he said that Mexico is asking for another 90-day break for continued negotiations. China's deadline is set for August 12 and while the talks are ongoing, the previous announcement of a 30 percent tariff applies.
The countries hardest hit by last night's order are, in addition to the already mentioned Canada, these:
Syria will receive a tariff of 41 percent.
Laos and Myanmar will receive 40 percent.
Switzerland will receive 39 percent.
Serbia and Iraq will receive 35 percent.
The expert: "Absolutely not good"
Robert Bergqvist, SEB's senior economist, calls Trump's announcement to postpone the tariffs for a few days "a tragic step towards increased unpredictability".
- This is absolutely not good, he tells TT on Friday morning.
He says it is difficult to keep up with the president's trips back and forth with tariff rates, pauses and exemptions.
– It is a nightmare for internationally active companies and everyone will have to pay when global trade is challenged, he says.
Increased unpredictability could ultimately mean that export companies in Sweden will have to cut back.
– Many believe that this is a first step away from total uncertainty. It may become a little clearer, but I still believe that the uncertainty will persist, says Bergqvist.
– Everyone is a loser. This is permanent damage to the world economy.
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