The letter was originally supposed to be released on July 4th, along with the customs levies on August 1, based on Trump’s previous comments. However, US officials were busy negotiating throughout the holiday weekend, including Japan, South Korea, the EU, India and Vietnam.
For more information, read Bloomberg Economics Insights: What to expect as the July 9 trade deadline
One of Trump’s signature moves is a one-sided threat once negotiations reach a critical stage. It is therefore unclear whether the letter he describes is real or is still intended to simply regruct as offering last-minute concessions.
After Trump announced the agreement with Vietnam last week, the country’s foreign ministry said negotiators are still coordinating with US counterparts to finalise details.
Although a temporary agreement with India was also expected to arrive, New Delhi officials have recently taken a more stringent stance, threatening the collection of some U.S. goods in retaliation for higher tariffs on Washington cars and their components.
I’m looking for an extension
Also, South Korea is South Korea when it comes to car rates, which is discussing with US officials that it has extended the deadline for the last ditch bid to avoid higher taxes.
Last week, and with the US stock markets achieving major legislative victory at record levels, Trump’s latest trade barrier risks rekindling investor concerns about the widespread and complex new tariffs being paid by American importers.
The first rollout of Trump’s so-called mutual tariffs on April 2 caused fears of a US recession and overturned the market. This replaced a 90-day freeze on these rates at 10% until July 9th.
In addition to the additional costs that domestic exporters create on US companies purchasing goods from overseas, domestic exporters face the possibility of retaliation from the economy, including the EU.
EU countries were explained about the situation of negotiations on Friday after last week’s talks in Washington, and were told that the technical agreement was in principle close, Bloomberg News previously reported.
Japan’s attitude
Meanwhile, the Japanese Prime Minister said the country is prepared for any possible tariff scenario. Speaking about Fuji TV’s “Sunday News the Prime” program, he said another major car producer trying to avoid Trump’s tariffs is ready to “stand tight” and defend their interests while anticipating any possible situation.
In a statement on Friday, the Cambodian government said it had agreed to the US on a framework agreement that would be released soon. At 49%, Cambodia’s threatened mutual tariffs were Trump’s highest. The Southeast Asian country is a significant exporter of textiles and footwear to the US.
Last week, Indonesia is confident that, according to the country’s leading negotiators, it is approaching securing a “bold” trade deal with the United States, extending to critical minerals, energy, defence cooperation and market access ahead of the looming tariff deadline.
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