The Race to August 1
U.S. President Donald Trump has revived threats of "reciprocal tariffs," setting an August 1 showdown for nations that haven’t inked new deals. Originally paused in April, the plan vowed 90 trade pacts in 90 days.
A New Tariff Landscape
At a recent AI summit, Trump suggested hiking the baseline U.S. tariff from 10% to a range of 15–50%. "A straight, simple tariff of anywhere between 15% and 50%," he said, hinting at tougher measures against countries that have "not been getting along."
- Steel & aluminum: 50% tariff
- Major partners: Mexico & Canada at 25% (excluding USMCA goods)
- Smaller exporters: Cambodia at 36%, Bangladesh at 35%
Global Impact & Negotiations
For young entrepreneurs, exporters, and tech hubs from Berlin to Bengaluru, these hikes could reshape supply chains and costs. U.S. Secretary of Commerce Howard Lutnick told CNBC that while new rates "will come in," doors remain open: "Nothing stops countries from talking after August 1."
What to Watch
- Trade deal breakthroughs before the deadline
- Sectoral pressure on tech, apparel, and manufacturing
- Responses from G20 trade ministers in coming weeks
As tariffs rise, global citizens should track negotiations and prepare for shifting prices on everything from gadgets to garments. Stay tuned as the world adapts to this next chapter of U.S. trade policy.
Reference(s):
cgtn.com
