In little greater than per week, US President Donald Trump’s 90-day pause on “reciprocal” tariffs is because of expire. Though the White Home has expressed potential flexibility over its deadline, subsequent Wednesday, the 9 July, might carry the reimposition of sky-high tariffs.
Tariff Deadline Attracts Shut
Per week after President Trump’s “liberation day” announcement in April, the President introduced a 90-day pause on his new tariff charges with a view to give time for nations to barter buying and selling offers with the US.
On the time, White Home commerce adviser Peter Navarro said that the administration would “run 90 offers in 90 days”. Later, in June, Commerce Secretary Howard Lutnick mentioned, “you’re going to see deal after deal, they’re going to begin coming subsequent week and the week after and the week after.”
Nevertheless, with eight days of the tariff reprieve remaining, the US has to this point solely reached restricted agreements with China and the UK.
With time operating out, the prospect of Washington reimposing excessive duties on lots of its buying and selling companions brings with it a level of uncertainty. It’s unclear what’s going to occur when the deadline is reached.
However, there have been options from the White Home that there could possibly be a level flexibility over the deadlines.
“We might lengthen it. We might make it shorter,” was Trump’s response final week when requested in regards to the timeframe for the US and the EU to conclude a commerce deal. “Maybe it could possibly be prolonged, however that’s a call for the president to make,” mentioned White Home press secretary Karoline Leavitt the day earlier than when speaking of the nearing deadline.
Commerce Talks Proceed
With the 9 July approaching, Washington stays engaged in talks with lots of its buying and selling companions. Right here is the newest on among the discussions:
On Friday, Trump mentioned he was slicing off commerce talks with Canada resulting from a disagreement over its digital companies tax, which might goal massive tech corporations. Ottawa was fast to scrap the levy with a view to revive negotiations.
Equally, on Monday night, Trump took intention at Japan on social media over claims that the nation gained’t purchase US-grown rice, suggesting that the US might impose greater tariffs on Japanese exports consequently.
In keeping with stories, India could possibly be on monitor to finalise an interim commerce settlement with the US this week to keep away from tariffs.
Shares Set New Highs
Regardless of tariff uncertainty, US inventory markets have capped a exceptional turnaround since Trump’s “liberation day” announcement, in what has been an eventful three months on Wall Road.
On Friday, the S&P 500 and the Nasdaq Composite closed at report highs. On Monday, each indices prolonged their positive aspects by 0.52% and 0.47% respectively, notching recent report highs. The Dow Jones additionally rose on Monday by 0.63%.
In the meantime, the US greenback has continued its downward slide. Within the first six months of the 12 months, the US Greenback Index, which measures the buck in opposition to a basket of foreign exchange, has dropped 10.9%.
Elsewhere, final week’s ceasefire between Iran and Israel has helped ease oil costs, which had spiked in the course of the battle. On Tuesday morning, international benchmark Brent crude was buying and selling at beneath $67 a barrel, its lowest degree since 11 June, simply earlier than Iran and Israel started exchanging navy strikes.
This weekend, OPEC+ will meet and is predicted to conform to a manufacturing hike of 411,000 barrels a day in August. This could be the fourth consecutive month that the group of oil producing nations has elevated output.
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