Early Friday morning local time, US President Trump said that he would start sending letters to trading partners on July 4, setting unilateral tariff rates, and stated that tariffs ranging from 10% to 70% would be imposed on 10 to 12 countries starting from August 1. Meanwhile, US Treasury Secretary Jason Bessent disclosed that about 100 countries might face an equivalent tariff rate of 10%.
The Trump administration announced in early April this year that it would impose unilateral high reciprocal tariffs on some countries, but then suspended the implementation for 90 days to give countries time for negotiations. During the grace period, it implemented a 10% reciprocal tariff. Now, as the July 9th negotiation deadline approaches, Trump's move undoubtedly exerts greater pressure on those trading partners who have not yet reached an agreement with the United States, and may have a profound impact on global trade, capital markets and the textile and apparel sector.
Survival stories of Various Countries: The UK and Canada are busy making concessions
Although the United States and Vietnam reached an agreement on July 2nd, reducing tariffs on Vietnamese goods from the originally planned 46% to 20%. However, negotiations with most key trading partners remain deadlocked, with few signs of breakthrough.
The UK was the first country to reach an agreement with the US. The British government agreed to make concessions on the import of American food and agricultural products in exchange for the US reducing tariffs on British car exports. The US side still retains the benchmark tariff of 10%.
However, it is worth noting that this agreement is more like a framework. The Economic Prosperity Agreement signed by the two sides at the G7 summit only implemented tariff preferences for British automobiles and aerospace products, while the reduction of tariffs on steel and pharmaceuticals still awaits further negotiations and has not fully fulfilled the earlier commitments made by both sides.
At present, the UK still faces a 25% tariff on the export of these products. If the two sides fail to reach an agreement before the negotiation deadline, the tariff may double to 50%.
Canada, which is also facing a choice, has recently made a compromise. Under the pressure of Trump's announcement of the termination of negotiations, the Canadian Ministry of Finance dramatically announced on June 29 that it would cancel the digital services tax plan targeting US tech giants, which was originally scheduled to take effect the next day.
The cancellation of the digital tax aims to restart trade negotiations with the United States before July 21 and prevent the escalation of the trade war. Previously, Canada had taken a tough stance, but eventually chose to make concessions in exchange for a negotiation window.
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