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United States President Donald Trump has warned of new tariffs of 15 to 20 per cent for trading partners who do not negotiate separate trade deals with the US.
Speaking from Scotland after clinching a large trade deal with the European Union, Trump said his administration will notify around 200 countries shortly of a new “world tariff” rate.
Some countries, including Brazil, face higher tariff rates of up to 50 per cent, which will start on Friday.
The announcement has spurred negotiations by a host of countries seeking lower tariff rates, including India, Pakistan, Thailand and Canada.
Canadian Prime Minister Mark Carney said on Monday trade talks with the US are at an intense phase and said his country was still hoping to walk away with a tariff rate below the 35 per cent announced by Trump on some Canadian imports.
The ‘world tariff’ announcement is another blow to the Australian government, which was hoping to secure a total tariff exemption.
Australia currently has a base rate of 10 per cent on its goods but Trump’s latest announcement could see this rise substantially.
Assistant treasurer Daniel Mulino told Sky News the government is speaking to the US administration about the situation which has “been in a state of flux for some time”.
“It’s not surprising that there’d be a statement that would suggest a change. The president’s been wanting to adjust his bargaining position in a range of ways along the way.”
Last week, Australia dropped a partial ban on US beef imports, which was hailed by the US as a “major trade breakthough” for Trump and his administration but was viewed widely as a bargaining chip Australia could use while attempting to push for tariff exemptions.
“It looks as though it’s (biosecurity) been traded away to appease Donald Trump,” Littleproud told ABC’s Radio National.
Trump’s announcement came shortly following the signing of a trade deal with the EU that includes a 15 per cent tariff on most EU goods, as well as investments in the US by European firms and large energy purchases over the next three years.
Japan also secured a deal with the US but trading partners have managed to completely dodge tariffs.
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