Recent Decisions Shift Perceptions from Uncertainty to Puzzlement
The recent decisions on trade negotiations made by the White House have shifted perceptions from uncertainty to puzzlement. To begin with, the July 9 deadline for concluding negotiations was postponed until August 1. So far, markets have viewed positively the flexibility with which President Donald Trump has extended some deadlines. However, as soon as several new measures were announced last week, markets started to slide again, serving as a reminder of the April fall in stocks and bonds that prompted President Donald Trump to reverse course, announcing a 90-day pause on tariff impositions.
New Measures Reveal Frustration
The new measures announced last week revealed frustration, as only two agreements were reached with the United Kingdom and Vietnam within 90 days, not the anticipated 90. Instead, letters were sent to 14 countries notifying them of higher tariff impositions if negotiations fail by August 1. One letter threatened a 50% tariff against a country with which the US has a positive trade balance, citing “Brazil’s treatment of former President Bolsonaro.” To cap off the week, a 50% tariff was imposed on copper imports, while Mexico and the European Union were informed of 30% tariffs, and Canada was warned of 35% tariffs.
Lingering Questions and Concerns
Amidst the puzzlement caused by these announcements, with only two weeks until August 1, there is hope that the deadline will be extended once more.
Key Questions and Answers
- What are the recent decisions on US trade negotiations? The White House postponed the July 9 deadline until August 1. Despite initial market positivity towards the extended deadlines, new measures announced last week caused markets to slide again.
- How many agreements were reached within the 90-day period? Only two agreements were reached with the United Kingdom and Vietnam, falling short of the expected 90.
- What tariff impositions were threatened or implemented? Threatened tariffs included 50% against a country with a positive trade balance with the US, due to its treatment of former President Bolsonaro. Copper imports faced a 50% tariff, while Mexico and the European Union were warned of 30% tariffs, and Canada was informed of 35% tariffs.
- What is the current sentiment surrounding these trade negotiations? The recent developments have caused confusion and uncertainty, with markets reacting negatively to the new measures. There is hope for another extension of the August 1 deadline.
About the Author: The article’s insights are provided by an international analyst and consultant, former director of the UN Economic Commission for Latin America and the Caribbean (ECLAC) office in Washington. He is a frequent commentator on economy and finance for CNN en Español TV and radio, UNIVISION, TELEMUNDO, and other media outlets.
