What is next for global trade as Trump’s July 9 tariff deadline looms?
What is next for global trade as Trump’s July 9 tariff deadline looms?
What is next for global trade as Trump’s July 9 tariff deadline looms?
Author: John Power
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Published on: 07/07/2025 | 00:00:00
AI Summary:
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Trump announced in April a 90-day pause on steepest tariffs after his “Liberation Day” plans sent markets into a tailspin. The Trump administration has indicated that trade partners that fail to reach deals with the US will face higher tariffs, but there are big question marks around which countries will be hit. On Sunday, Trump said he would begin sending letters to particular countries this week outlining new tariff rates. China, the United Kingdom and Vietnam have reached trade deals with the US. Under the US-China deal, tariffs on Chinese goods were reduced from 145 percent to 30 percent, while duties on US exports fell from 125 percent to 10 percent. The deal, however, only paused the higher tariff rates for 90 days. Trump’s steepest tariffs have been put on pause, though a 10 percent baseline duty has been applied to all US imports and levies on Chinese exports remain at double-digit levels. So far, the fallout from the tariffs introduced has been modest, though analysts have warned that inflation may still take off once businesses burn through inventory stockpiles built up. Consumer spending fell 0.1 percent in May, according to the US Commerce Department, the first decline since January. If we’re talking about time lags, this is usually the last place economic damage shows up. Sentiment remains fragile, remember.”
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