The ongoing trade tensions between major economies continue to be a significant concern for businesses and investors alike. In this blog post, we will provide an update on the latest developments in the trade war saga, including new tariffs, legal challenges, and diplomatic efforts to resolve the conflict.

UBS Economics estimates that the effective tariff rate stands at 16%, with the US Court of Appeals for the Federal Circuit ruling against the administration’s reciprocal and border tariffs. The ruling could result in the tariffs remaining in place until October 14th. Meanwhile, the EU has adopted draft regulations to remove all tariffs on US industrial goods and give preferential treatment to some US agricultural and seafood products.

In a surprising turn of events, Japan has canceled its trade negotiator’s trip to the US due to disagreements over plans for Japan to increase purchases of American rice and reduce tariffs on agricultural products. China has received an extension on Section 301 tariffs on 178 goods until November 29th, while Canada has removed most of its retaliatory tariffs against the US. Mexico has raised tariffs on imports from China, while India’s informal trade negotiations channels remain open despite a US team canceling its trip to India in August. Brazil is also facing potential restrictions on its imports of diesel from Russia, and South Africa’s central bank has stated that any restrictions on the SWIFT system are likely to affect individuals rather than the country as a whole.

In more positive news, South Korea has announced plans to purchase over 100 Boeing jets in a significant boost to the US aerospace industry. The move is seen as a sign of improving relations between the two countries following a period of tension in recent years.

The trade war continues to be a complex and evolving issue, with various economies taking different approaches to addressing their concerns. While some countries have imposed retaliatory tariffs on each other, others have opted for diplomatic efforts to resolve the conflict. As always, it is essential to stay informed about these developments to ensure your business remains competitive and resilient in today’s global marketplace.