Key Trade Deadlines Loom As Focus Shifts Back To Tariffs
With President Trump’s focus recently shifting towards the Israel-Iran conflict and other geopolitical issues, attention is now expected to return to trade tariffs as key deadlines loom.
On July 9th, the 90-day pause on the “Liberation Day tariffs” will expire, which has kept global tariffs, except for those on China, at a 10% rate. Initially, Trump had outlined a range of tariffs, which varied by country.
These included a 20% tariff on the European Union, 24% on Japan, 30% on South Africa, and a hefty 46% on Vietnam. For China, tariffs started at 54% but escalated to as high as 145% amid the trade war, though a temporary suspension is in place until August 14th.
For the UK, the 10% base tariff will remain unchanged, even if the “Liberation Day tariffs” are reintroduced. However, UK steel exporters face a separate challenge. Currently benefiting from temporary relief from the US’s 50% steel tariffs, this exemption is set to expire on July 9th unless a new agreement is reached.
While the UK government is optimistic about securing a complete removal of the tariff, no resolution has been confirmed following recent trade negotiations. Trump did ratify an agreement to allow up to 100,000 UK-made cars to enter the US market with a reduced 10% tariff. This decision follows Britain’s automobile sector experiencing its weakest May in over seventy years.
With these significant deadlines approaching, the coming weeks will be crucial for global trade. As always, the team at Killick Martin will closely monitor the unfolding developments.
