Trump's tariff date arrives after 90-day rollercoaster

Irish Examiner

a day ago

Major US trading partners scrambled over the weekend to finalise trade deals or lobby for extra time as US president Donald Trump said he's notifying about a dozen countries today of the new tariff level on their shipments to the US.
'I signed some letters and they'll go out on Monday — probably 12,' Mr Trump told reporters over the Fourth of July weekend, adding the missives involve 'different amounts of money, different amounts of tariffs and somewhat different statements'.
Asked to identify the countries, he said, 'I have to announce it on Monday.'
Mr Trump's latest remarks suggest talks remain fluid and deals elusive before the July 9 deadline announced by the US administration.
The letters were supposed to go out on July 4 with a tariff imposition date of August 1 based on Mr Trump's earlier comments.
But US officials were busily negotiating through the holiday weekend, including with Japan, South Korea, the European Union, India, and Vietnam.
One of Mr Trump's signature moves in dealmaking is a unilateral threat when negotiations reach critical stages, so it's unclear whether the letters he describes are real, or merely meant to strike fear into trading partners still reluctant to offer last-minute concessions.
After Mr Trump announced an agreement with Vietnam last week, the country's Ministry of Foreign Affairs said negotiators were still coordinating with their US counterparts to finalise the details.
India threatens retaliatory levies
While an interim accord with India was also expected to be reached, officials in New Delhi have signalled a tougher stance in recent days, threatening levies on some US goods in retaliation to Washington's higher tariffs on automobiles and their components.
Also concerned about auto tariffs is South Korea, which has discussed with US officials extending the deadline in a last-ditch bid to avert higher levies.
Basking in a major legislative win last week and with the US stock market at record levels, Mr Trump's newest trade barriers risk re-igniting investors' concerns about a broad and complex new web of customs duties to be paid by American importers.
The initial rollout of Mr Trump's so-called reciprocal tariffs on April 2 sparked fears of a US recession and sent markets tumbling.
That gave way to a 90-day freeze of those rates at 10% through July 9 for the more than 50 nations targeted.
On top of the additional costs that tariffs create for US companies that purchase goods from abroad, domestic exporters face the possibility of retaliation from economies, including the EU.
EU member states were briefed on the status of negotiations on Friday after a round of talks in Washington last week, and were told that a technical agreement in principle was close.
On Friday, European Commission spokesperson Olof Gill said 'progress was made towards an agreement in principle during the latest round of negotiations'.
The Commission will re-engage with the US on substance over the weekend.
Some EU carmakers and capitals continue to push for an agreement with Mr Trump that would allow for tariff relief in return for increasing investment in the US, according to people familiar with the matter.
They added that any deal ultimately rests on Trump and expected scenarios this week include an agreement in principle that maintains the current truce without new tariffs being introduced; talks continue without a deal and country-specific levies that were suspended come into force; or the US considers the EU hasn't met its terms and announces more unilateral tariffs.
The EU has indicated it's willing to accept an arrangement that includes a 10% universal tariff on many of its exports, but wants the US to commit to lower rates than that on key sectors such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft.
Meanwhile, Japanese prime minister Shigeru Ishiba said the country is prepared for all possible tariff scenarios.
Speaking on a Fuji TV programme, he said Japan — another major auto producer trying to avoid Mr Trump's tariffs — is ready to 'stand firm' and defend its interests while anticipating every possible situation.
Bloomberg