Two weeks remain until President Donald Trump’s deadline to finalize trade deals with major partners. The aim is to avoid raising tariffs scheduled for July 9, called “Liberation Day.” After that date, countries without agreements face tariffs above the current 10% rate. To this point, the United Kingdom alone has secured an agreement that maintains the 10% reciprocal tariff rate. The agreement does not, however, tackle the main issues, such as the still-existing 25% tariffs on steel.

Status and Challenges in US-European Union Trade Negotiations

United States-European Union trade talks are underway, but are complicated. Bloomberg reports that the best hope is to find general principles to extend talks.  President Trump has criticized the discussions, threatening to impose tariffs unilaterally if talks fail. The EU is weighing whether to accept some tariff asymmetry or respond with countermeasures. These countermeasures would aim to correct trade imbalances between the two sides.

Key Issues in Ongoing US-India and US-Vietnam Trade Discussions

India and the US are still negotiating, hoping to conclude an interim pact earlier than planned. Differences, however, still persist, notably on farm goods and genetically modified seeds. The US wants access to India’s market for GMO seeds that India is not willing to concede. India also seeks exemptions from reciprocal tariffs and sector-specific duties. Indian Prime Minister Narendra Modi missed a chance to advance talks when Trump left the G7 summit early.

Vietnam is actively pursuing a trade deal with the US, led by Communist Party chief To Lam. His delegation aims to secure agreements involving increased purchases of American goods like Boeing airplanes. Negotiators reportedly are close to a framework agreement on trade. Vietnam is pushing for tariffs between 20% and 25% to maintain some protection. This balance reflects Vietnam’s effort to access US markets while preserving tariff control.

Japan’s and South Korea’s Trade Talks over Auto Tariffs 

Trade talks between the US and Japan face challenges, especially around auto tariffs and trade deficits. Prime Minister Shigeru Ishiba’s government expects extended negotiations as no agreement was reached at the G7 summit. Despite multiple talks, Donald Trump and Ishiba remain divided on car tariffs. Trump’s tariffs are set to increase on Japanese cars to 24%, adding to existing duties. Opposition leader Yoshihiko Noda stated, no consensus has been reached in these talks.

South Korea has made limited progress with the US on tariff exemptions for cars and steel. New Trade Minister Yeo Han-koo met US officials in late June to seek relief from 25% tariffs. These tariffs threaten South Korea’s export-driven economy, already under pressure. A planned meeting between President Lee Jae Myung and Donald Trump was canceled when Trump left the summit early. This cancellation adds uncertainty to the ongoing trade negotiation timeline.

Trade Negotiations and Tariff Reduction Efforts with Other Nations

Thailand, Malaysia, Switzerland, Canada, and Mexico are also engaged in talks to reduce tariffs. Thailand seeks to lower tariff exposure from 36% to 10%, negotiating detailed proposals. Malaysia’s Prime Minister Anwar Ibrahim highlighted that 60% of its semiconductor exports go to the US. Switzerland pursues agricultural market access but faces issues after the US currency monitoring. Canada aims to avoid steel and aluminum tariff hikes before mid-July. Mexico works to remove Donald Trump’s 50% tariffs on steel imports, showing the tariffs’ wide global impact. As the deadline approaches, President Trump’s tariffs will significantly affect global trade relations. While progress exists, unresolved issues and recent summit departures increase uncertainty. The outcome will influence trade flows and the US’s partnerships worldwide.

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