Trump announced over the weekend he did not think he will “need to” extend the deadline of the 10% across the board reciprocal tariffs set to expire on July 9th.
Meanwhile negotiations continue with our trading partners.
China: A framework was reached last month allowing for 55% tariffs on Chinese imports (30% plus the 25% in place since Trump’s first term), resumption of rare earth minerals exports from China and the approval of visas for Chinese students attending US universities.
Japan: Teams are negotiating a reduction in auto tariffs in exchange for buying more US rice and energy. Currently, auto tariffs are set at 25% with an additional 24% looming.
Canada: Negotiations are back on track after Canada rescinded their planned digital services tax yesterday.
Mexico: Current negotiations are centered around establishing quotas on steel in an effort to reduce the current 50% tariff.
EU: The European Union seems willing to accept the current 10% tariffs on most of their exports, however, they are seeking exemptions on alcohol, semiconductors, commercial aircraft and pharmaceuticals and lower tariffs on autos, steel and aluminum.
UK: A deal was reached last month keeping the 10% tariffs on most of their exports and lower tariffs on cars and aircraft parts. Tariffs on steel and aluminum remain unresolved