U.S. Commerce Secretary Lutnick believes that Chairman Powell has maintained excessively high interest rates.

The deadline for imposing tariffs is set for August 1, with a basic 10% tariff for small countries. The President of the United States is confident in renegotiating the United States-Mexico-Canada Agreement and reaching an agreement with the European Union.

MAIN CONTENT

  • The U.S. Commerce Secretary assesses the current interest rate as too high.

  • August 1 is the deadline for imposing a basic 10% tariff on small countries.

  • The President of the United States believes in renegotiating and reaching an important trade agreement.

Why does the U.S. Commerce Secretary believe maintaining high interest rates is inappropriate?

Commerce Secretary Lutnick commented that the current interest rate policy run by Chairman Powell is affecting economic growth rates. According to analysis by economist Jinshi reported on July 20, excessively high interest rates increase borrowing costs and put pressure on businesses, especially during the economic recovery phase.

High interest rates are hindering development and investment processes. Policies need to be adjusted more flexibly to support businesses and the market.

U.S. Commerce Secretary Lutnick, speaking in July 2024

What does the August 1 tariff deadline mean for international trade relations?

August 1 has been identified as the final deadline for applying new tariff rates, where small countries will face a basic 10% tariff. This measure aims to adjust the trade balance while putting pressure on trade partners to improve trade conditions.

The implementation of this tariff reflects the United States' tough trade strategy in the context of increasingly fierce global competition. Tariff policy is also seen as a leverage tool to promote future trade negotiations.

What does the President of the United States expect when renegotiating the United States-Mexico-Canada Agreement and connecting with the European Union?

The President of the United States expresses confidence in renegotiating the United States-Mexico-Canada Agreement (USMCA) with the goal of updating terms to fit the new economic context. At the same time, negotiations aim for a trade agreement with the European Union (EU) to expand cooperation and enhance exports.

We aim for sustainable, fair agreements that benefit both parties, facilitating growth and job creation.

President of the United States, speaking in July 2024

What are the expected impacts of implementing the new tariffs and trade negotiations?

Tariff policy will significantly impact international trade flows, especially for small countries subjected to a 10% tariff. Meanwhile, the renegotiation process of the USMCA and expanding relations with the EU is expected to contribute to trade balance and increase export advantages.

Data from the U.S. Department of Commerce in 2023 shows an increase in imports and exports following similar previous trade policy changes, indicating positive effects if negotiations are successful.

Frequently Asked Questions

1. Why do high interest rates create difficulties for the economy?

High interest rates increase borrowing costs, leading businesses to reduce investment and consumers to limit spending, negatively impacting economic growth (according to expert Jinshi, 2024).

2. Which group of countries is subject to the basic 10% tariff?

The 10% tariff applies to small countries to balance the trade balance and promote effective trade negotiations.

3. What is the USMCA and why does it need to be renegotiated?

The USMCA is a trade agreement among the United States, Mexico, and Canada; renegotiating it helps update regulations to align with the modern economy and new opportunities.

4. How important is the trade agreement with the EU?

The EU agreement expands the world's largest export market, improves trade conditions, and increases benefits for U.S. businesses.

5. Can tax policy affect the prices of goods?

Tariffs can increase import prices, directly affecting the costs of consumer goods and production.

Source: https://tintucbitcoin.com/lutnick-phe-binh-powell-duy-tri-lai-cao/

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