Before G-hour, Trump's global trade policy faces a big test

According to Western media, US President Donald Trump's dream of a new world trade order is facing a tough test, as bilateral negotiations are taking place at the last minute.

At the same time, an appeals court in Washington is also examining the legality behind Mr. Trump’s strategy of invoking emergency economic powers to impose sweeping tariffs on imported goods.

The 79-year-old Republican president maintained his tough stance, posting on social media network Truth Social: "Tariffs are making America GREAT & RICH again."

In another post, he asserted that the world's largest economy would have "no chance of survival or success" without protectionist measures.

But big questions remain about the effectiveness of Mr Trump's plan – and whether he will actually follow through on his most powerful threats.

Just hours before the deadline, Mr. Trump announced a 90-day delay in raising tariffs on Mexican products after talks with his counterpart, Ms. Claudia Sheinbaum.

White House press secretary Karoline Leavitt said Mr Trump would sign an executive order on July 31 (US time) to implement the tariffs he had threatened.

While Mr Trump has hailed a surge in customs revenue since the start of the year, economists warn that tariffs could fuel inflation.

Legally, a lower court had previously blocked most of the tariffs from taking effect, forcing the Trump administration to appeal.

Deal or no deal?

So far, Washington has announced agreements with several countries and the European Union (EU), with new tariffs expected to take effect from August 1. South Korea, a US ally, also reached a last-minute deal with a 15% tariff, significantly lower than the 25% threatened by Mr. Trump.

But the situation with other countries is more tense. For example, with Brazil, Mr. Trump announced a 50% tariff on its products, although he delayed its implementation and granted key exemptions, in an attempt to pressure the ally to drop its prosecution of right-wing former president Jair Bolsonaro. Meanwhile, India was hit with a 25% tariff, and Canada was warned of trade consequences for its plans to recognize a Palestinian state.

Washington has yet to finalize a deal with neighboring Canada, whose trade relationship was threatened after Prime Minister Mark Carney announced plans to recognize a Palestinian state at the United Nations General Assembly in September.

“That will make it very difficult for us to make a Trade Deal with them,” Mr. Trump warned on social media.

Prime Minister Carney admitted on July 30: "It is possible that we will not be able to conclude negotiations before August 1."

Even the agreements that have been reached remain murky in detail. The EU, despite the agreement, continues to push for an exemption for its wine industry.

Hanging over the entire global economy is still the unresolved trade confrontation between the United States and its main rival China.

The increased tariffs scheduled to take effect on August 1 were first announced in April, when Mr Trump imposed a minimum 10% tariff on goods from most partners, citing unfair trade practices.