The decision to extend trade talks or impose higher tariffs after July 9 will be up to President Donald Trump.
Finance Minister Scott Bessent confirmed that negotiations with the European Union and Japan are still ongoing, while internal political pressures affect the progress of negotiations.
MAIN CONTENT
July 9 is the decisive date for continuing negotiations or imposing additional tariffs.
Negotiations with the EU and Japan are facing many challenges due to political and technical limitations.
The administration will choose a replacement for Fed Chairman Jerome Powell this fall.
Who will decide whether to extend or impose tariffs after July 9?
According to Treasury Secretary Scott Bessent, President Donald Trump will have the final say on whether to extend trade negotiations or impose higher tariffs than expected from July 9. Bessent stressed that this is an important and unpredictable political issue.
“We will be sending letters to countries with new tariffs, based on how they treat the United States,” President Trump said.
(Donald Trump, President of the United States, 2024, Fox News)
A 90-day suspension of the 10% tariff began on April 9 for the EU, Japan and many other partners to allow for negotiations. If no agreement is reached, the tariffs will be reimposed as planned.
How are negotiations with the European Union and Japan going?
Bessent said talks with the European Union were continuing and that U.S. Trade Representative Jamieson Greer would work with EU officials over the weekend to push for a result. Meanwhile, talks with Japan have made little progress due to internal constraints related to the Japanese upper house election on July 20.
“Japan's upper house election limits chances of a major trade deal.”
(Scott Bessent, US Secretary of the Treasury, 2024)
Bessent also informed that negotiations with Vietnam were “completed in principle”, and clarified that the new 20% tax is not cumulative with the current 10% tax, avoiding confusion about the applicable tax rate.
What is the plan to choose a replacement for Fed Chairman Jerome Powell?
According to Bessent, the US administration will focus on choosing a replacement for Mr. Jerome Powell this fall. He emphasized that there are many quality candidates and the final decision will be made by the Fed regarding interest rate policy.
In addition, Bessent said that if interest rates do not fall in time, the planned cut in September could be applied on a larger scale. He also acknowledged that it is rare for an individual to hold both the positions of Treasury Secretary and Fed Chairman at the same time, which has not happened since the 1930s.
Features EU Japan Vietnam Negotiation phase Continue with weekend meetings Limited by election 20/7 Finalization of principles Temporary tariff level 10% common tariff 10% common tariff No addition of new 20% tariff to old 10% Potential agreement before 9/7 Possible extension Low due to political factors Almost complete
Frequently Asked Questions
Q1: Who decides on higher taxes after 9/7?
A1: President Donald Trump will decide based on the negotiation process and political factors.Q2: Why were negotiations with Japan affected?
A2: The Japanese upper house election on July 20 creates political constraints, slowing down the negotiation process.Q3: Does the 20% tax applicable to Vietnam include the previous 10% tax?
A3: No, the 20% tax will replace, not add to, the current 10%.Q4: When will Fed Chairman Jerome Powell be replaced?
A4: The selection will be conducted in the fall of 2024 with many excellent candidates.Q5: What does the US government plan to do if the tariffs are not lifted?
A5: Higher tariffs will be applied and the government will continue to adjust based on the response of countries.
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