Trump steps up Canada trade war after Carney’s Palestine pledge – US politics live

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President Donald Trump said on Wednesday the US will charge a 15% tariff on imports from South Korea, down from a threatened 25%, as part of a deal that eases tensions with a top-10 trading partner and key Asian ally.

South Korea also agreed to invest $350 billion in the United States in projects selected by Trump and to purchase energy products worth $100 billion, Reuters reported.

The arrangement, announced after Trump met with Korean officials at the White House, came during a blizzard of trade policy announcements. Many countries are rushing to cut deals ahead of 1 August, when Trump has promised higher tariffs will kick in.

“I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea,” Trump wrote on Truth Social.

The negotiations were an early test for South Korean president Lee Jae Myung, who took office in June after a snap election. He said the deal eliminated uncertainty and set US tariffs lower than or at the same level as major competitors.

“We have crossed a big hurdle,” Lee said in a Facebook post. Trump said Lee would visit the White House “within the next two weeks” for his first meeting with the U.S. president.

South Korea will accept American products, including autos and agricultural goods into its markets and impose no import duties on them, Trump added.

South Korea’s top officials said the country’s rice and beef markets would not be opened further, and discussions over US demands on food regulations continue.

Trump escalates trade war with Canada following Palestine stance

Good morning and welcome to our rolling coverage of US politics as Donald Trump intensified his trade war with Canada a day ahead of his 1 August deadline for a tariff agreement.

The president posted on his Truth Social platform:

Wow! Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!

We’ll be bringing you all the developments on this story today. In other news:

• Trump has said the US will charge a 15% tariff on imports from South Korea as part of an agreement with the key Asian trading partner and ally that avoids even higher levies. In contrast on Wednesday, Trump placed 25% tariffs on imports from India and 50% on those from Brazil.

• Brown University has reached an agreement with the Trump administration that will reinstate nearly $50m in research funding by agreeing a commitment to nondiscrimination in both admissions and campus programs, and will grant federal officials access to its admissions data. Meanwhile $108m in federal research funding to Duke University has been frozen.

• The US Federal Reserve left its benchmark interest rate unchanged on Wednesday, even amid intense pressure from Trump to lower rates. Earlier in the day, figures showed US gross domestic product (GDP) grew at a better-than-expected annual rate of 3% in the second quarter of 2025.

• Kamala Harris announced on Wednesday that she will not run for governor of California – a highly anticipated decision that leaves the contest to lead the country’s largest blue state wide open.