US Trade Deadline Looms as Nations Scramble for Deals

 

President Donald Trump's retaliatory tariff deadline is approaching on 9 July, and the United States has yet to finalise agreements with several countries.

 

The looming tariffs, initially announced on 2 April before a brief suspension, threaten to escalate trade tensions globally as countries race against the clock to secure exemptions and prevent significant economic fallout. 

 

From the European Union's readiness for a deal to Vietnam's uncertain agreement and Japan's high-risk sectors, the international trade landscape remains fraught with uncertainty.

 

Agence France-Presse (AFP) has compiled the status of negotiations between the US and its key trading partners before the retaliatory tariffs, announced by Trump on 2 April but suspended the following week, come into force again.

 

 

EU Ready for a Deal

The European Union (EU) stated on Thursday (3 July) that it was "ready for an agreement" with Washington. The EU Trade Commissioner held discussions with US negotiators.

 

Ursula von der Leyen, President of the European Commission, said the EU aims to "reach an agreement in principle" before 9 July.

 

If an agreement isn't reached, EU goods will face a doubled tariff from the current 10% to 20%. Trump had previously threatened to levy up to 50%.
 

 

Vietnam: 'Uncertain Agreement'

Washington and Hanoi reached a trade agreement on Wednesday (2 July) that seemed largely symbolic with few details, but it did allow Vietnam to escape the initial 46% tariff announced by Trump.

 

Under this agreement, Vietnamese goods entering the US will face a minimum tariff of 20%, while goods manufactured in other countries will be subject to a 40% tariff. This provision aims to control Chinese goods "transiting" through Vietnam.

 

However, questions remain about how much goods using foreign components will be taxed. Analysts also warn of the risk of retaliatory measures from Beijing.

 

 

 

Japan: 'Rice and Automobiles' at High Risk

Despite being a close US ally and a significant investor, Japan may not escape Trump's tariffs. Ryosei Akazawa, Japan's chief trade negotiator, made several trips to Washington until the end of June.

 

But Trump still criticised Japan for not opening its rice and automobile markets more to the US.

 

"I'm not sure we're going to get a deal," Trump said, adding that Japan might have to face tariffs of "30%, 35%, or whatever we determine."

 

 

 

India: 'Opportunity'

Indian manufacturers and exporters are hopeful they will escape the 26% tariff. Negotiations between the two countries have progressed well over several weeks. Trump himself revealed at the end of June that a "very big" deal was close.

 

Ajay Sahai, Secretary General of the Federation of Indian Export Organisations, posted on Facebook that he had received "positive indications" but admitted the situation was still fluid.

 

Nirmala Sitharaman, Minister of Finance, reiterated that agricultural products and dairy remain "sensitive issues that cannot be crossed."

 

South Korea: 'No Clear Path Yet'

The Seoul government, which has avoided steel and automotive tariffs, does not want other export goods to face a blanket 25% tariff. South Korea is expected to use cooperation in shipbuilding as a bargaining chip.

 

"But at this stage, both sides are unclear about what exactly they want. I cannot say with certainty that we will finalise everything by 8 July," said Lee Jae-myung, South Korea's new president, on Thursday.

 

 

 

Indonesia, Thailand, Taiwan: 'Awaiting Negotiation Results'

Other Asian economies, such as Indonesia, Thailand, and Cambodia, facing tariffs as high as 49%, are eagerly awaiting.

 

Indonesia has expressed its intention to import more energy, agricultural goods, and other products from the US. Bangladesh has offered to buy more Boeing aircraft and agricultural products.

 

Taiwan, a crucial security ally of Washington, faces a 32% tariff if no agreement is reached.

 

Despite ongoing obstacles, Taiwan's Vice President Hsiao Bi-khim stated that negotiators from both sides are "working diligently" to find a way forward.

 

 

 

Switzerland: 'Hoping for Deadline Extension'

The Swiss government stated that Washington acknowledged Switzerland's good faith efforts and expects tariffs to remain at 10% on 9 July while negotiations continue.

 

However, no decisions had been made by the end of June, so Switzerland has not ruled out the possibility of facing tariffs at 31%.