Trump's Tariff Deadline Approaching: What to Expect

The 90-day deadline set by President Donald Trump for countries to make trade deals with the United States or face higher tariffs is approaching. The deadline is at 12.01am US Eastern Time on July 9. The global economy is at stake as the deadline nears.

On April 2, Trump introduced new reciprocal tariff rates for key US trading partners, with some tariffs as high as 50 per cent. Economists warned of a potential global recession. The tariffs took effect on April 9, causing market reactions. Trump announced a three-month pause to allow countries more time to negotiate deals with the US.

Despite claims of impending deals, only three have been announced, with one pending finalization. The administration hints at more deals in progress. Trump threatened to impose tariffs if countries fail to reach agreements.

As the July 9 deadline approaches, the administration may return to higher tariff rates. Trump has expressed flexibility in decision-making. The evolving tariff rates could impact countries economically, with negotiations still possible until August 1.

The recent deal with Vietnam suggests that countries may face higher tariffs even with agreements. This strategy aligns with Trump's goal of imposing tariffs to boost revenues and domestic manufacturing.

Overall, the US-Vietnam deal is seen as a positive step towards more stable bilateral agreements and clearer investment outlook, according to UBS Global Wealth Management.

According to the source: 9News.