Ahead of July 9 tariff deadline, status check of US trade deals with countries; who will Trump send letters to?

This comes after Trump announced “reciprocal tariffs” on April 2 and levied higher tariff rates on almost all the products being shipped to the United States by its trading partners with a base tariff of 10% and thereafter additional duties ranging up to 50%. However, due to the global financial crisis in the economies of several countries and to secure a trade deal with the nations, the Trump administration delayed the effective date for all but 10% until July 9.

Here’s the state of play for several US trading partners facing July 9 deadline:

INDIA

Trump has long promised a trade deal with India but talks between the two countries have stalled a couple of times over US tariffs on auto components, agricultural goods and steel. India is facing a 26% tariff on its products being exported to the US and New Delhi has signalled that it is ready to reduce the high tariffs for America but doesn’t agree with Washington’s demands for opening up the agriculture and dairy sectors.

JAPAN

The Japanese government has said that it is continuing to seek an agreement with the United States on tariffs while defending its national interest. Japan’s tariff negotiator Ryosei Akazawa held telephonic conversations with US Commerce Secretary Howard Lutnick on Thursday and Saturday, and the Japanese administration said it was an “in-depth exchange” between the two. Trump on Monday suggested that Japan could receive a letter from the US administration and it could face duties of up to 35%.

EUROPEAN UNION

US officials have said that they are making good progress with the 27-member European Union and a deal is being charted out but no breakthrough has been achieved. An EU diplomat reportedly said that bloc’s regulations on social media and other technology companies weren’t up for negotiations, which are traditionally on a stricter side than the US. EU officials have said the bloc would be ready for a 10% universal tariff on several of its exports, but wants exemptions in pharmaceuticals, alcohol, semiconductors, and commercial aircraft, Bloomberg reported.

SOUTH KOREA

Seoul held frequent talks with Washington in the past couple of months and some preliminary agreements were made, however, South Korea has said that it would seek an extension on Trump’s July 9 deadline to secure a tariff deal and talks would continue this week. South Korea’s President Lee Jae Myung’s NSA Wi Sung-lac is scheduled to visit Washington during July 6-8 to discuss several bilateral issues. However, due to a free trade agreement between the two countries, South Korea imposes virtually no tariffs on US imported goods and hence, America is focused on foreign exchange rates, defense costs among others.

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