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US President Donald Trump is set to make trade deal decisions this week, ahead of his self-imposed August 1 deadline, according to US Commerce Secretary Howard Lutnick. “We’re going to have things done by Friday,” Lutnick told CNBC in an interview.
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Lutnick emphasised that August 1 is a “hard deadline” for countries to begin paying tariffs, stating, “That’s a hard deadline, so on August 1, the new tariff rates will come in… Nothing stops countries from talking to us after August 1, but they’re going to start paying the tariffs on August 1”.
The US is currently engaged in separate trade negotiations with China and the European Union. US and EU officials are discussing key issues, including:
- Steel and aluminum tariffs: Ongoing talks aim to resolve differences on tariffs imposed on these critical industries.
- Digital services regulations: Officials are working to establish a framework for digital services, a crucial aspect of modern trade.
Countries that fail to reach a trade deal with the US by August 1 will face tariffs. Smaller countries, including those in Latin America, the Caribbean, and Africa, will be subject to a baseline tariff of 10 per cent. Larger economies will either need to open up their markets or pay a fair tariff to the US. India, in particular, could face tariffs of up to 26 per cent if a deal isn’t reached.
(With inputs from Reuters)
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