(NewsNation) — Time is ticking for countries to strike a trade deal with the United States or face higher tariff rates.
With less than 24 hours for potential deals to close, Trump most recently announced a deal with South Korea ahead of Friday’s deadline and escalated threats against Canada.
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As part of the deal with South Korea, its imports will see a 15% tariff rate, while American products sent to the country will not be charged a tariff. South Korea will also give the U.S. $350 billion for investments and buy $100 billion in energy products, Trump said.
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On Thursday, Pakistan reached a trade agreement with Trump that aims to develop Pakistan’s oil reserves. The U.S. also reached a deal with the European Union on Sunday, which set tariffs at 15% for European goods, rather than Trump’s threatened 30%.
Trump similarly reached a deal last week with Japan, setting a 15% tariff on Japanese goods — lower than the 25% tariff Trump had threatened to impose. Japan and the EU, like South Korea, also agreed to invest hundreds of billions into the U.S.
Other recent deals include those made with Indonesia, the Philippines, Vietnam and the United Kingdom.
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While Mexico hasn’t reached a formal agreement, Trump announced Thursday the U.S. and its southern neighbor will maintain their current arrangement for at least 90 days.
“Mexico will continue to pay a 25% Fentanyl Tariff, 25% Tariff on Cars, and 50% Tariff on Steel, Aluminum, and Copper. Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many,” Trump said on social media.
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More agreements could be announced Thursday, but several holdouts remain:
Canada (35%)
Australia (10%)
Brazil (50%)
India (25% and an unspecified “penalty” for Russian oil)
The administration has also created a trade framework with China, though details have not yet been confirmed or released.
Trump on Wednesday doubled down on Friday’s deadline, saying it “will not be extended.”
Trump’s tariffs factor into Fed interest rate decisions
The tension between Trump and Fed chair Jerome Powell could grow, with the Federal Reserve voting to hold interest rates steady on Wednesday.
Powell has cited Trump’s levies as one of the main reasons for withholding cuts to the rate, despite Trump’s continual criticism over the choice.
“Despite elevated uncertainty, the economy is in a solid position,” Powell said at a news conference Wednesday, emphasizing the Fed’s dual mandate of maximizing employment while keeping inflation in check.
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“’Too Late’ MUST NOW LOWER THE RATE,” Trump wrote on Truth Social. “Let people buy, and refinance, their homes!”
While a rate cut could lead to lower borrowing costs on mortgages, auto loans and credit cards, it’s not guaranteed, and policymakers have remained in a wait-and-see mode.
NewsNation’s Andrew Dorn, Kellie Meyer and Alicia Nieves contributed to this report.
