Washington: The United States is warning its trading partners to negotiate new deals or face higher import taxes by August 1, marking the latest deadline in President Donald Trump's implementation of "reciprocal" tariffs. Trump announced that letters will be dispatched on Monday to alert countries that higher duties are imminent unless new agreements are reached.
According to Deutsche Welle, US Treasury Secretary Scott Bessent stated on CNN's "State of the Union" that President Trump will be sending letters to some trading partners, emphasizing that if negotiations do not progress, tariffs will revert to the April 2 levels by August 1. Bessent expressed optimism about swift deal-making, citing intense weekend negotiations with the European Union (EU) as an example.
In April, Trump had announced a 90-day suspension of tariffs ranging from 10% to 50% on numerous countries, including key trading allies, which is set to expire on July 9. Bessent clarified that the August target is a definitive deadline rather than a new negotiation timeline, emphasizing that countries must expedite talks if they wish to avoid the reimplementation of elevated tariffs.
The EU is among those facing potential tariff hikes, with duties on goods such as French cheese and German electronics potentially soaring to 50% without a new deal. EU and US negotiators have been working diligently through the weekend to forge a new agreement. Bessent highlighted the administration's strategy of applying "maximum pressure," noting significant progress in talks with the EU and expressing confidence in reaching multiple major deals in the coming days.
While agreements have already been secured with the United Kingdom and Vietnam, the EU remains hopeful for a resolution but is prepared to retaliate with tariffs on US exports if necessary. The economic stakes are substantial, with the value of EU-US trade in goods and services totaling £1.7 trillion ($2 trillion) in 2024, or an average of £4.6 billion daily, according to EU statistics agency Eurostat.