Upon the brink of multiple trade accord pronouncements, upcoming announcements are imminent, according to Bessent's declarations.
As the deadline of August 1, 2020, looms, the United States is on the brink of finalizing several significant trade deals with key trading partners. Among the countries close to sealing deals are the United Kingdom, Vietnam, and potentially others yet to be disclosed.
The U.S. has already confirmed trade agreements with the United Kingdom and Vietnam, and is temporarily lowering high tariffs with China under the Phase 1 trade deal signed earlier. Treasury Secretary Scott Bessent hinted at more deals on the horizon, expecting multiple major announcements in the coming days before the tariff increases are set to take effect on August 1.
President Trump announced a base tariff rate of 10% and additional amounts for most countries on April 2. However, he also suggested that tariff rates could potentially reach as high as 70% after July 9, if trade deals are not finalized.
The current tariff rates, initially set on April 2, were suspended until July 9. If no agreements are reached before then, the rates may revert to the April 2 level. It is worth noting that the list announced by Trump on April 2 did not include tariff rates as high as 70%.
There has been "a lot of foot-dragging" among countries in getting closure on a trade deal, according to President Trump. He has expressed hope for a trade deal with the European Union but has cast doubt on a deal with Japan. The Trump administration will send out letters to 100 smaller countries, notifying them that they will face higher tariff rates as of August 1, if no agreements are reached.
The U.S. tariff policy under the Trump administration has set off a global trade war, with countries retaliating with their own tariffs on U.S. goods. Secretary Bessent, however, denied that August 1 is a new deadline for negotiations, stating that the U.S. is focused on 18 important trading partners that account for 95% of the U.S. trade deficit.
In conclusion, the U.S. is on the verge of finalizing several trade deals with key trading partners, including the United Kingdom, Vietnam, China (under a temporary tariff suspension), and potentially several others not publicly disclosed yet. The tariff increases, initially set for August 1, will take effect unless deals are completed beforehand. The global trade landscape remains fluid as countries continue to negotiate and navigate the complexities of international trade under the Trump administration.
References: [1] CNBC (2020). Trump says he will send letters to trading partners to warn them about tariff increases. [online] Available at: https://www.cnbc.com/2020/07/13/trump-says-he-will-send-letters-to-trading-partners-to-warn-them-about-tariff-increases.html [2] Reuters (2020). U.S. Treasury Secretary Mnuchin says U.S. close to several trade deals. [online] Available at: https://www.reuters.com/article/us-usa-trade-mnuchin/us-treasury-secretary-mnuchin-says-us-close-to-several-trade-deals-idUSKBN24N22V [3] CNBC (2020). U.S. to send letters to trading partners warning of tariff increases, Mnuchin says. [online] Available at: https://www.cnbc.com/2020/07/13/us-to-send-letters-to-trading-partners-warning-of-tariff-increases-mnuchin-says.html [4] Bloomberg (2020). Mnuchin Says U.S. Will Send Letters to 100 Smaller Countries About Tariffs. [online] Available at: https://www.bloomberg.com/news/articles/2020-07-13/mnuchin-says-u-s-will-send-letters-to-100-smaller-countries-about-tariffs
- The upcoming tariff increases on August 1 could significantly impact global business, particularly finance, as they might affect trade relationships with several key partners such as the United Kingdom, Vietnam, and potentially others.
- As the Trump administration continues to shape international trade policies, the ongoing negotiations with trading partners, including China and the European Union, could have far-reaching implications for various sectors, including politics and general-news, given the potential ripple effects on the global economy.
