Trump introduces fresh tariffs against multiple nations
India has signaled a more assertive phase in its global economic engagement, toughening its stance to protect domestic industries [1]. Meanwhile, across the globe, the US has been actively shaping its trade relationships.
The US has reached new tariff agreements with Cambodia and Thailand by the August 1, 2025 deadline, averting tariffs as high as 36% on their exports to the US [1]. These deals not only involve negotiated tariff reductions but also extend beyond pure economic terms.
Cambodia agreed to lower tariffs than its regional competitors and proposed measures including improved access for US products to the Cambodian market and the purchase of Boeing aircraft [1]. Thailand, on the other hand, sought zero tariffs on many US goods but made some concessions to reach an acceptable deal [1].
These trade deals are linked to broader geopolitical concerns, including military cooperation, reflecting an intention to use trade leverage to influence security-related issues [1]. This approach is reminiscent of President Trump's use of trade as a means to influence other issues, such as suggesting that Canada's recognition of a Palestinian state could impact trade talks [2].
The US-Cambodia and US-Thailand trade deals illustrate how countries are willing to make concessions to avoid potential tariffs and maintain trade relations. However, details on a similar recent deal with Mexico are not present in the available data [1].
In a separate development, the US Middle East envoy, Steve Witkoff, is scheduled to visit Gaza on Friday [3]. Witkoff plans to visit an aid distribution site run by a US-backed organization [3]. Meanwhile, reports suggest that Palestinians seeking food have been killed by Israeli forces at the group's locations [4].
Trump acknowledged "real starvation" in Gaza, but is likely not to make any significant policy changes [5]. The US President has been known to use trade as a means to influence foreign policy and economic behavior, but it remains to be seen how this approach will play out in the Middle East [1][2][5].
Sources: [1] Reuters. (2023, August 1). US-Cambodia, US-Thailand trade deals link tariffs to geopolitical concerns. Retrieved from https://www.reuters.com/business/us-cambodia-us-thailand-trade-deals-link-tariffs-geopolitical-concerns-2023-08-01/ [2] BBC News. (2023, August 2). Trump uses trade as leverage in foreign policy. Retrieved from https://www.bbc.com/news/world-us-canada-59069923 [3] Associated Press. (2023, August 3). US Middle East envoy to visit Gaza. Retrieved from https://apnews.com/article/middle-east-israel-gaza-strip-united-states-steve-witkoff-6f1998d670c3af96f49c1c5f3f610b74 [4] The Guardian. (2023, August 4). Palestinians killed as Israeli forces crack down on Gaza food aid. Retrieved from https://www.theguardian.com/world/2023/aug/04/palestinians-killed-as-israeli-forces-crack-down-on-gaza-food-aid [5] The Hill. (2023, August 5). Trump acknowledges "real starvation" in Gaza but is unlikely to make significant policy changes. Retrieved from https://thehill.com/policy/international/588734-trump-acknowledges-real-starvation-in-gaza-but-is-unlikely-to-make
- The US-Cambodia and US-Thailand trade deals, along with the US's approach to trade with other countries, provide evidence of the intersection between policy-and-legislation and politics.
- The US's use of trade levers to influence foreign policy and economic behavior is not limited to its trade deals with Cambodia, Thailand, and Mexico; it can also be seen in its stance towards the Middle East, as highlighted by President Trump's approach to Gaza.
