U.S. President Donald Trump declared that the sweeping tariffs he has imposed globally are transforming America “into a great and rich country,” as foreign governments scramble to finalize trade deals with Washington less than 24 hours before his August 1 deadline, according to AFP. “A year ago America was a dead country. Now it’s the hottest country in the world,” he wrote on Truth Social.
⚖️ Last-Minute Trade Concessions
Several nations—including South Korea, the EU, the UK, Japan, and Vietnam—agreed to tariff frameworks before the deadline. For example, South Korea secured a deal for a 15% tariff in exchange for a $350 billion investment in U.S. projects and $100 billion in energy purchases.
Meanwhile, trade talks with Brazil and India remain unresolved. Trump plans to enforce 50% tariffs on Brazilian goods and 25% on Indian imports, blaming both countries for political grievances and trade imbalances .
🇨🇦 Pressure on Canada
Canada now faces the threat of a 35% tariff if it proceeds with recognizing Palestinian statehood at next month’s UN assembly. Trump warned on Truth Social that such a move would derail any trade deal.
📉 Economic Risks & Legal Pushback
Critics warn that while tariffs may boost federal revenue, they risk exacerbating inflation and harming growth. U.S. inflation indicators are already rising—especially among working‑class consumers—prompting concern among economists and lawsuits challenging Trump’s unilateral tariff authority. The Federal Reserve is also resisting political pressure to cut rates in response to market uncertainty.
📊 Expert Skepticism & Historical Parallels
Economists largely reject Trump’s premise that tariffs alone made America wealthy. Many point to Smoot-Hawley comparisons, warning that retaliatory measures often offset benefits. A recent analysis found that while tariffs gave a slight boost to domestic business formation, losses from partner retaliation mostly erased gains.
🌍 Geopolitical Leverage & Trade Strategy
Trump is using trade policy as strategic leverage—corners of Canada, India, and Brazil are tied not only to economic terms but foreign-policy behavior. His “reciprocal” tariffs escalate pressure on countries based on political alignments and supply-chain considerations. Observers note this trade salvo is reshaping global dynamics, potentially eroding multilateral norms upheld by institutions like the WTO.
📅 What’s Next?
– Watch for finalized deals, especially with Canada, Mexico, and Taiwan, as the August 1 deadline expires.
– Expect retaliatory moves from impacted countries, including possible WTO filings.
– Monitor U.S. economic signals: inflation, trade deficits, and business investment may determine whether the tariffs deliver on Trump’s promises—or backfire.
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