The U.S. Secretary of the Treasury warns of a return to strict tariffs if no trade agreement is reached by August 1.
Mr. Benson stated that the current trade negotiation strategy focuses on creating maximum pressure to promote reaching an agreement before the August deadline.
MAIN CONTENT
The U.S. Secretary of the Treasury confirmed the possibility of reinstating tariffs to the April level if no agreement is reached.
The negotiation strategy focuses on maximizing pressure on partners.
What warnings does the U.S. Treasury Department give about tariffs if negotiations fail?
U.S. Secretary of the Treasury, Ms. Benson, stated that if a trade agreement is not reached by August 1, 2024, the tariff rate will be reverted to the level applied in April. This reflects the seriousness and determination of the government to protect national economic interests.
Failing to reach an agreement will force us to restore tariff measures to ensure a fair and sustainable trade position.
Ms. Benson, U.S. Secretary of the Treasury, July 2024
This decision is based on economic data and the international trade situation, aimed at maintaining negotiation leverage in talks with foreign partners. According to the Q2 2024 report, tariff measures have contributed to limiting trade deficits and protecting domestic manufacturing.
What is the current trade negotiation strategy of the United States?
The negotiation strategy is designed to create maximum pressure on partners to achieve an agreement in the shortest time possible. Ms. Benson stated that leveraging pressure is necessary to protect economic interests and promote fair and sustainable trade.
Our strategy is to use all necessary tools to create maximum pressure, thereby encouraging partners to quickly achieve a fair agreement.
Ms. Benson, U.S. Secretary of the Treasury, July 2024
This pressure is not only aimed at tariffs but also includes other supportive measures such as controlling imports and exports and reviewing foreign investment flows. This strategy is based on international economic theory and analyses of the potential for effective negotiation.
What will be the impact of reinstating tariffs?
Reinstating tariffs to the April level will directly affect trade flow, potentially increasing import costs and impacting global supply chains. This could also put pressure on importing businesses and domestic consumers.
According to a survey by the U.S. International Trade Commission in 2024, higher tariffs could increase input product prices by 5-8%, thereby reducing the competitiveness of domestic businesses in the international market.
Comparison table of tariff rates applied in 2024
Timeline Tax Rate (%) Main Impact April 2024 20–25 Decrease imports, protect domestic production Current (July 2024) 10–15 Lower tax rate, create negotiation leverage Expected to be reinstated 1/8/2024 20–25 Increase import costs, increase pressure on partners
Frequently Asked Questions
What is the deadline for reaching a trade agreement? August 1, 2024, according to a statement from the U.S. Secretary of the Treasury. What tariff rate will apply if no agreement is reached? The tariff rate will revert to the level applied in April 2024, around 20-25%. What is the current negotiation strategy of the United States? Maximize pressure to push partners to quickly finalize the agreement. What is the impact of reinstating tariffs on the market? It will increase import costs, affecting domestic businesses and consumers. Who commented on this negotiation strategy? Ms. Benson, U.S. Secretary of the Treasury, officially announced in July 2024.
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