The United States has issued an ultimatum to its trade partners, including BRICS nations, to reach trade deals by July 9th. Donald Trump has warned that if agreements are not reached by the deadline, a 10% tariff will be implemented from August 1st.
Trump Tariff: The United States has given its trade partner countries a final opportunity to reach agreements by July 9th. Former President Donald Trump, taking a hard stance against BRICS-supporting nations, has warned of imposing a 10% additional tariff from August 1st. The Trump administration maintains that this is not a threat but part of its policy. So far, the US has reached limited agreements with the UK, Vietnam, and China, while pressure continues on several other countries.
Heavy Tariffs to be Implemented from August 1st
The Donald Trump administration announced a 10% tariff in April, which was postponed for some time for trade negotiations. This deadline is now ending on July 9th. The US has made it clear that if any country does not agree to a trade agreement by this deadline, the tariffs will be implemented from August 1st.
US Treasury Secretary Scott Besant, in an interview with CNN, said that this is not a threat but a part of the established US policy. He stated, "If no agreement is reached, the tariffs will come back like a boomerang."
Trump's Policy: 'Maximum Pressure'
The strategy of former President Donald Trump and his administration is clear. They want to bring the trade balance in favor of the US by putting 'maximum pressure' on their partner countries. Trump has said that every country will be told how much duty they will have to pay to trade with the US.
The aim of this policy is that countries should reach agreements according to the terms of the US and create space for American products in their markets. Under this, letters have been sent to 12 countries, asking them to make a final decision by July 9th.
Countries with Which Agreements Have Been Reached
So far, the US has agreed on limited agreements with some countries. These include:
UK: An agreement has been reached between the US and the UK regarding tariffs. Both countries have agreed to keep bilateral trade relations stable.
Vietnam: Vietnam has finalized the agreement by accepting some parts of the US's terms.
China: A temporary agreement has been reached between the US and China, in which some tariffs have been reduced. However, China has made it clear that it will not completely succumb to US pressure.
Talks Continue with France, European Union, and Japan
The US's talks with France and the European Union are still ongoing. US officials hope that some more agreements can be completed by the end of July.
Japan's reaction has been harsh. The Prime Minister of Japan has said in clear words, "We will not compromise easily." Japan believes that the US's tariff policy could harm the freedom of international trade.
BRICS Countries' Opposition
Trump's tariff policy has received the most opposition from the BRICS countries. Countries like Brazil, Russia, India, China, and South Africa, in the recent BRICS meeting held in Rio de Janeiro, called this policy 'illegal' and 'dangerous for the global economy'.
BRICS countries say that this unilateral policy of the US violates the rules of the World Trade Organization (WTO) and will create instability in trade. Several emerging economies, including India, consider this policy as disruptive to the balance.
