“If Trump’s goal here is to strike deals that will lower foreign barriers to American exports and deliver better trading conditions for American manufacturers (who rely on imports), then hiking tariffs on South Korea makes startlingly little sense.”
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“the new tariffs seem to violate an existing trade deal between the U.S. and South Korea. That deal, the U.S.-Korea Free Trade Agreement, was signed in 2007 by President George W. Bush and implemented in 2012. Under the terms of the deal, about 95 percent of the goods traded between the two countries are imported tariff-free. Among other things, that deal put an end to high South Korean tariffs on American cars and light trucks, which has boosted American exports and U.S. auto manufacturing jobs.
On the whole, the deal has been good for both countries. Bilateral trade between the U.S. and South Korea expanded nearly 70 percent in the first 10 years that the deal was in place. As the Heritage Foundation noted in 2022, the deal was particularly good for American farmers (who saw exports to South Korea hit record highs) and for foreign investment in American industries (South Korean investment in the U.S. nearly tripled during the deal’s first decade in force).”
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“Trump himself signed a renegotiated version of that same trade deal in 2018. The so-called KORUS 2.0 rolled back some of the free trade provisions in the original deal—most notably, it limited exports of Korean steel to the U.S. and postponed a planned elimination of the U.S. tariff on imported light trucks.
Still, it was mostly “a minor tweak” to the previous deal, as the Cato Institute termed it at the time.
Trump called the reworked deal “fair and reciprocal” and said it was “a historic milestone in trade.”
Now, less than seven years later, he’s effectively torn up that deal. Or he’s pretending that it never existed (or he forgot about it).
So, here’s the question: What is the White House hoping to accomplish with this latest maneuver?
If the goal is to lower tariffs across the board, then KORUS already did that. If the goal is to increase American exports to foreign countries by getting them to lower their trade barriers, then KORUS has already done that too. If the goal is to allow Trump to renegotiate the supposedly flawed trade deals from previous generations of American leaders, then KORUS 2.0 did that.
And, of course, if the goal is to strike more deals with more countries—as the White House keeps claiming—then this seems to be a step in the wrong direction. What other leader will be willing to negotiate seriously with this administration, knowing full well that it does not respect the deals it reaches?”
“By the time the fire was out more than £100,000 worth of goods had been destroyed including communications equipment for Starlink satellites, which have proved vital on the frontline in the war in Ukraine.”
“Trump said the tariffs on Japan and South Korea would be separate from any “sectoral” tariffs that he imposes. That appears to refer to the duties that he has already imposed on autos, auto parts, steel and aluminum under Section 232 of the 1962 Trade Expansion Act, which gives the president broad authority to restrict imports to protect national security.”
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“Trump said he was imposing the duties to help reduce the “very persistent” trade deficits with the two countries — meaning they export more goods to the U.S. than they buy from the U.S. — which the president blamed on Japan and South Korea’s tariffs and other trade barriers.
However, most economists disagree with that analysis, saying that macroeconomic factors like relative savings rates play more of a role in driving the overall U.S. trade deficit.”
“Tariffs will revert back to their April 2 rates on Aug. 1 for countries that fail to nail down new trade deals with the United States, Treasury Secretary Scott Bessent said Sunday, just three days before the Trump administration’s initial July 9 deadline for tariffs to return.
Bessent told CNN’s “State of the Union” that the Trump administration would be sending out letters to 100 smaller countries “saying that if you don’t move things along, then on August 1st, you will boomerang back to your April 2nd tariff level.””
“The attack on the ship comes as Iranian-backed militias in Iraq are also suspected of numerous drone and missile attacks over the past two weeks.
An attack on a vessel in the Red Sea was reported on Sunday, which was the first attack there in months.
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The US launched airstrikes on the Houthis in mid-March. The airstrikes ended in April with some kind of a deal, and the Houthis appeared to stop attacks on ships.”
“Asked whether the U.S. would be flexible with any countries about on the July 9 deadline, Trump said, “Not really.”
“They’ll start to pay on Aug. 1,” he added. “The money will start to come into the United States on Aug. 1, OK, in pretty much all cases.”
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Tariffs are paid by importers — which can pass on part or all of the costs to consumers — and not necessarily by entities in the goods’ country of origin.”
“The term “axis,” however, suggests that all four powers have a unified view of what they want the global order to look like and have a grand plan to get there. It sounds mischievous and conspiratorial, and it’s most certainly inaccurate. What’s occurring is less a strong, cohesive grouping bounded by ideology and long-term considerations and more a collection of bilateral relationships whose interests sometimes converge — until they don’t.”
“Tehran has suspended cooperation with the International Atomic Energy Agency (IAEA), Iran’s President Masoud Pezeshkian announced Wednesday, according to state media reports.
The move marks a significant stepback in Iran’s international cooperation after Washington’s dramatic June 21 strikes on its nuclear enrichment facilities.”
“Since Rubio took over the NSC, he has shrunk its staff by more than half. It now has fewer than 100 people, according to a person familiar with the NSC process. Arguably more importantly, Rubio has imposed changes to what’s called “the interagency process” — a key function of the NSC that involves coordinating policy and messaging across government agencies and departments.
That process, two people told me, is now one in which important meetings aren’t held, career staffers are often in the dark about what’s expected of them and some people or their institutions try to take advantage of power vacuums. I granted many of those I spoke to anonymity to discuss internal administration dynamics.
Some U.S. diplomats and other national security professionals are worried that the current structure means small crises will explode into big ones because they don’t get early attention, and that key officials who deal with priority issues, such as Ukraine, are being iced out of important conversations.
One of the people familiar with the AUKUS situation said the broken process was already fueling turf fights, such as with Colby, a man known for challenging status quo thinking.
“It’s Game of Thrones politics over there,” the person said.”
“That unwillingness to significantly budge on his array of tariffs has bogged down trade negotiations and hindered the administration from crafting substantial trade deals. As the U.S. has set out to negotiate deals with more than 60 trading partners, world leaders have grown increasingly frustrated with what they say are unbalanced demands from the U.S.
Other trading partners, including the European Union, have bristled at the terms of the UK framework and said they would not agree to a similar deal. That arrangement left a 10 percent so-called baseline tariff in place, while laying out a path to slash sector-specific tariffs.
The bloc isn’t alone, and Trump’s numerous demands and “do-it-or-else” approach have made it challenging for countries to corral the domestic political support they’ll need in order to sell any deal at home.”