The Biden administration is on the brink of reinstating tariffs that could significantly impact international trade, particularly for countries like Taiwan and members of the European Union.
Treasury Secretary Scott Bessent announced on Sunday, July 6, that unless trading partners reach agreements with Washington by the August 1 deadline, tariffs previously imposed by President Donald Trump will be reactivated.
Bessent’s comments align with statements made by President Trump aboard Air Force One, in which he indicated plans to communicate tariff rates to various countries soon.
Originally set forth in an announcement on April 2, these tariffs included a 10% duty on goods from almost all trading partners, which were supposed to increase for a select few.
However, President Trump had temporarily put these hikes on hold, allowing negotiations to take place before a July 9 deadline.
Countries are racing against time to negotiate deals that may help them circumvent these tariffs.
As the negotiating deadline approaches, the administration has already struck agreements with the United Kingdom and Vietnam.
Additionally, Washington and Beijing have entered into discussions aimed at reducing tariffs on each other’s products.
Bessent expressed optimism about upcoming negotiations, stating that several deals are close to being finalized.
While he refrained from naming specific countries, he did emphasize the significance of making progress before the impending deadline.
In a bid to expedite communication, Trump indicated his plan to send out letters notifying countries of the new tariff rates.
Describing the process as simpler than navigating complex negotiations, he asserted that this approach would clarify terms for those wishing to do business with the United States.
Responding to concerns over the administration’s negotiation tactics, Bessent dismissed the notion that the U.S. was relying on threats.
He clarified that the August 1 date was not a new deadline but simply the date when tariffs would be imposed if no agreements were reached.
Should countries wish to maintain favorable rates, they are urged to accelerate their negotiations.
Using ‘maximum pressure’ as a strategy, Bessent noted that the European Union is making notable progress after an initially slow start in discussions.
Talks were ongoing over the weekend, with EU and U.S. negotiators working to reach a consensus before the tariff hikes take effect.
French Finance Minister expressed optimism regarding the potential for a deal this weekend.
However, not all parties are willing to compromise easily.
Japanese Prime Minister Shigeru Ishiba has publicly stated that he will not make concessions in his trade discussions with the U.S.
As such negotiations continue, leaders from BRICS nations, currently convening in Rio de Janeiro, are expected to voice their objections to U.S. tariffs, labeling them illegal and detrimental to the global economy.
As the August 1 deadline looms, the future of international trade relationships remains uncertain, contingent on the outcomes of these high-stakes negotiations.
image source from：lemonde
