Pressure to Seal Trump Trade Deals Ramps Up
With just two weeks left before President Trump’s deadline to make trade deals, talks with key US partners are still stuck. If no deal is made by July 9, countries could face steep new tariffs, which will be much higher than the current 10%. So far, only the UK has a deal, but it doesn’t solve everything, like the 25% steel tariffs. China is on a separate timeline, with a temporary pause on tariffs lasting until mid-August to allow talks to continue.
Effects of Tariffs on Household Goods
Starting Monday, President Trump’s tariffs will affect washing machines, fridges, and ovens. This could mean higher prices for everyday items in the US. According to the US Commerce department, the new tariffs are in addition to Trump’s existing 50% tariffs on imports of steel and some steel items and will apply to the steel content of goods.
Trade Deals with EU and Japan
The EU now expects a 10% "reciprocal" tariff to be the starting point for a US-EU trade deal. The EU is pushing for a deal modeled on the US-UK agreement. Trump has threatened tariffs of up to 50% on EU imports after various tariff "pauses" lapse on July 9. Japan’s trade negotiator Ryosei Akazawa said that negotiations remained "in a fog" despite both sides seeking to make a deal. Akazawa also said that Japan is not fixated on the July 9 deadline, which is when reciprocal tariffs return to higher levels.
Impact on Businesses and Economy
German car makers have been hit with around $535 million in costs due to President Trump’s tariffs, the VDA auto industry revealed. Metal companies in the EU want the bloc to impose export duties or curbs on scrap metal shipments "in the next few weeks" to stem a sharp increase in flows to the United States caused by the Trump administration’s trade policies. Ireland plans to use its budget surplus to protect its corporate competitiveness as President Trump’s tariffs pose heightened risks to its economy.
Latest Updates
South Korea’s Trade Minister Yeo Han-koo has requested again to be exempt from US tariffs, including duties affecting key sectors such as cars and steel. The US Supreme Court on Friday denied an appeal by two family-owned companies to put a legal challenge to President Trump’s tariffs on a fast track. German auto group, Volkswagen, may build a new factory in the US to ease tensions with President Trump over tariffs.
Conclusion
The pressure is mounting on President Trump to seal trade deals with key partners, including the EU and Japan, before the July 9 deadline. The effects of tariffs on household goods and businesses are already being felt, with higher prices and costs expected. As the deadline looms closer, it remains to be seen whether Trump will be able to negotiate successful trade deals, or if the tariffs will have a lasting impact on the global economy.
