EconomyLens.com
No Result
View All Result
Thursday, July 3, 2025
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
EconomyLens.com
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
No Result
View All Result
EconomyLens.com
No Result
View All Result
Home Economy

Deal or no deal: What happens with Trump’s July tariff deadline?

Emma Reilly by Emma Reilly
July 1, 2025
in Economy
Reading Time: 7 mins read
A A
0
20
SHARES
246
VIEWS
Share on FacebookShare on Twitter

US President Donald Trump is set to reimpose steep tariffs on dozens of economies July 9, unless they reach deals to avert the higher duties. ©AFP

Washington (AFP) – A week before US President Donald Trump reimposes steep tariffs on dozens of economies, including the EU and Japan, many are still scrambling to reach a deal that would protect them from the worst. The tariffs taking effect July 9 are part of a package Trump imposed in April citing a lack of “reciprocity” in trading ties. He slapped a 10 percent levy on most partners, with higher customized rates to kick in later in countries the United States has major trade deficits with. But these were halted until July to allow room for negotiations.

Related

Strike by French air traffic controllers disrupts summer travel

Ethiopia’s mega dam on the Nile ‘now complete’: PM

Strike by French air traffic controllers disrupts summer travel

Japan plans ‘world first’ deep-sea mineral extraction

US-Vietnam trade deal sows new China uncertainty

Analysts expect countries will encounter one of three outcomes: They could reach a framework for an agreement; receive an extended pause on higher tariffs; or see levies surge.

– ‘Framework’ deals –

“There will be a group of deals that we will land before July 9,” said Treasury Secretary Scott Bessent last Friday on CNBC. Policymakers have not named countries in this group, although Bessent maintains that Washington has been focused on striking deals with about 18 key partners. “Vietnam, India and Taiwan remain promising candidates for a deal,” Asia Society Policy Institute (ASPI) vice president Wendy Cutler told AFP. Without a deal, Vietnam’s “reciprocal tariff” rises from the baseline of 10 percent to 46 percent, India’s to 26 percent, and Taiwan’s to 32 percent.

Josh Lipsky, international economics chair at the Atlantic Council, cited Indian negotiators’ extension of their US trip recently in noting that it “seems like a frontrunner.” “Japan was in that category, but things have set back a little,” Lipsky said, referring to Trump’s criticism Monday over what the president called Japan’s reluctance to accept US rice exports. The deals, however, will unlikely be full-fledged trade pacts, analysts said, citing complexities in negotiating such agreements. Since April, Washington has only announced a pact with Britain and a deal to temporarily lower tit-for-tat duties with China.

– Extended pause –

Bessent has also said that countries “negotiating in good faith” can have their tariffs remain at the 10 percent baseline. But extensions of the pause on higher rates would depend on Trump, he added. “With a new government, (South) Korea looks well positioned to secure an extension,” Cutler of ASPI said. Lipsky expects many countries to fall into this bucket, receiving an extended halt on higher tariffs that could last until Labor Day, which falls on September 1. Bessent earlier said that Washington could wrap up its agenda for trade deals by Labor Day, a signal that more agreements could be concluded but with talks likely to extend past July.

– Tariff reimposition –

For countries that the United States finds “recalcitrant,” however, tariffs could spring back to the higher levels Trump previously announced, Bessent has warned. These range from 11 percent to 50 percent. Cutler warned that “Japan’s refusal to open its rice market, coupled with the US resistance to lowering automotive tariffs, may lead to the reimposition of Japan’s 24 percent reciprocal tariff.” Trump himself said Tuesday that a trade deal was unlikely with Japan and the country could pay a tariff of “30 percent, 35 percent, or whatever the number is that we determine.”

Lipsky believes the European Union is at risk of having tariffs snap back to steeper levels too — to the 20 percent unveiled in April or the 50 percent Trump more recently threatened. An area of tension could be Europe’s approach to digital regulation. Trump recently said he would terminate trade talks with Canada — which is not impacted by the July 9 deadline — in retaliation for the country’s digital services tax, which Ottawa eventually said it would rescind. This week, EU trade chief Maros Sefcovic is in Washington in a push to seal a trade deal, with the EU commission having received early drafts of proposals that officials are working on.

© 2024 AFP

Tags: tariffstradeUS-China relations
Share8Tweet5Share1Pin2Send
Previous Post

Global stocks mixed as markets track US trade deal prospects

Next Post

Philippines biodiversity hotspot pushes back on mining

Emma Reilly

Emma Reilly

Related Posts

Economy

Drought-hit Morocco turns to desalination to save vegetable bounty

July 2, 2025
Economy

UK govt backs finance minister after tears in parliament

July 2, 2025
Economy

Public or private? Funding debate splits reeling aid sector

July 2, 2025
Economy

IMF urges Swiss to strengthen bank resilience

July 2, 2025
Economy

India exporters cautiously optimistic as US tariff deadline looms

July 2, 2025
Economy

Fate of major trade deal with EU hangs over Mercosur summit

July 2, 2025
Next Post

Philippines biodiversity hotspot pushes back on mining

Fate of major trade deal with EU hangs over Mercosur summit

Australian airline Qantas says hit by 'significant' cyberattack

'Writing is thinking': do students who use ChatGPT learn less?

0 0 votes
Article Rating
Subscribe
Notify of
guest
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
  • Trending
  • Comments
  • Latest

New York ruling deals Trump business a major blow

September 30, 2024

Elon Musk’s X fights Australian watchdog over church stabbing posts

April 21, 2024

Women journalists bear the brunt of cyberbullying

April 22, 2024

France probes TotalEnergies over 2021 Mozambique attack

May 6, 2024

Ghanaian finance ministry warns against fallout from anti-LGBTQ law

74

New York ruling deals Trump business a major blow

72

Shady bleaching jabs fuel health fears, scams in W. Africa

71

Stock markets waver, oil prices edge up

65

US stocks back at records as oil prices rally

July 3, 2025

UK’s Starmer backs finance minister after tears in parliament

July 3, 2025

Tesla reports lower car sales, extending slump

July 3, 2025

Strike by French air traffic controllers disrupts summer travel

July 3, 2025
EconomyLens Logo

We bring the world economy to you. Get the latest news and insights on the global economy, from trade and finance to technology and innovation.

Pages

  • Home
  • About Us
  • Privacy Policy
  • Contact Us

Categories

  • Business
  • Economy
  • Markets
  • Tech
  • Editorials

Network

  • Coolinarco.com
  • CasualSelf.com
  • Fit.CasualSelf.com
  • Sport.CasualSelf.com
  • SportBeep.com
  • MachinaSphere.com
  • MagnifyPost.com
  • TodayAiNews.com
  • VideosArena.com
© 2025 EconomyLens.com - Top economic news from around the world.
No Result
View All Result
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials

© 2024 EconomyLens.com - Top economic news from around the world.