The U.S.-EU trade agreement still has a chance of being reached before the August 1 deadline, however, the risk of high tariffs remains very large.
Howard Lutnick, U.S. Secretary of Commerce, affirmed that the U.S. and the EU are actively negotiating, but time is running out. If no agreement is reached, import tariffs will be implemented according to the Trump administration's plans.
MAIN CONTENT
The deadline for U.S.-EU negotiations is August 1, after which tariffs will be applied.
The Trump administration has sent official letters announcing tariffs to many major partners such as the EU, Canada, and Mexico.
The U.S. plans to renegotiate the United States-Mexico-Canada Agreement (USMCA) expected within the next year.
Can the U.S.-EU trade agreement be reached before the August 1 deadline?
Howard Lutnick, U.S. Secretary of Commerce, affirmed that the potential for reaching an agreement remains very high, based on recent negotiations with the EU.
"We are talking to the world's largest trading partner, and I believe an agreement will be signed," he emphasized in an interview with CBS Face the Nation. However, Lutnick also warned that time is running out until August 1, if not reached, tariffs will be strictly enforced.
"We will have an agreement. I am confident about that, but it cannot extend beyond August 1."
Howard Lutnick, U.S. Secretary of Commerce, July 30, 2023, CBS News
The decision to impose tariffs by the Trump administration and its scope of impact
The U.S. government has sent official letters to major trading partners such as the EU, Canada, Mexico, Japan, and Brazil announcing new import tariffs ranging from 20% to 50%, with the metal copper item facing the highest tariff of up to 50%.
Smaller countries in Latin America, the Caribbean, and Africa will face a basic tariff of 10%, consistent with previous statements by President Trump regarding the general tariff for these countries.
Howard Lutnick emphasized: "Large economies must choose either to open their markets or face fair tariffs from the United States." This is a tough message, with no room for negotiation without serious dialogue.
The impact of tariffs on global trade relations
The new tariff levels are expected to have widespread effects on supply chains and the prices of imported goods in the United States. This move is putting pressure on the EU government and other partners to renegotiate, avoiding significant economic losses.
"Renegotiation is necessary because free trade helps promote sustainable growth, whereas high tariffs will harm both economies."
Dr. Elena Marshall, international trade expert, Global Economic Policy Institute, 2023
The U.S. is about to renegotiate the United States-Mexico-Canada Agreement (USMCA) after one year
Although goods compliant with USMCA are exempt from the new tariffs, Mr. Lutnick stated that President Trump is expected to readjust this agreement within the next year to strengthen national interests.
The USMCA agreement plays a strategic role in North American trade relations, with proposed amendments expected to build on current progress but will change many conditions to optimize benefits for the United States.
Frequently Asked Questions
1. Will the U.S. actually impose tariffs on the EU starting August 1?
According to Secretary Howard Lutnick, if no agreement is reached by August 1, import tariffs will be officially implemented.
2. What tariff rates will be applied to large countries?
Tariffs range from 20% to 50% depending on the item, with the highest tariff on metal copper at 50%.
3. How will smaller countries be taxed?
Countries in Latin America, the Caribbean, and Africa face a basic tariff of 10%, in line with previous statements by President Trump.
4. Will USMCA be affected?
Currently, goods compliant with USMCA are exempt from tariffs, but the U.S. government plans to renegotiate this agreement in the coming year.
5. Is the current negotiation situation optimistic?
Secretary Howard Lutnick is very optimistic about the chances of reaching a trade agreement with the EU before the August 1 deadline.
Source: https://tintucbitcoin.com/howard-lutnick-my-eu-sap-chot-thoa-thuan/
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