The US is approaching a crucial July 9 deadline for reinstating higher tariffs on key trade partners, with several agreements and tensions shaping the outlook.
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Treasury Secretary Scott Bessent indicated that around 100 countries could face a minimum "reciprocal" tariff rate of 10% if deals are not reached. He also expects a "flurry" of trade agreements before the deadline.
Relations with China show signs of easing after the US lifted export restrictions on chip design software and ethane, following a May framework agreement aimed at a broader trade deal. Companies like Synopsys and Cadence can resume sales to Chinese customers.
President Trump announced a deal with Vietnam that imposes a 20% tariff on imports, down from an initially threatened 46%. He warned of a 40% tariff on "transshipping" goods originating elsewhere but routed through Vietnam.
Negotiations with Japan have reportedly deteriorated, with Trump threatening tariffs as high as 35%, describing Japan as 'very tough' and 'spoiled.'
The European Union is willing to accept a 10% universal tariff but seeks exemptions for pharmaceuticals, alcohol, semiconductors, and aircraft. Talks with the US are ongoing.
Canada has removed its digital services tax affecting US tech firms, with both countries aiming for a trade deal by mid-July after resuming talks.
Source: www.finance.yahoo.com