U.S. President Donald Trump announced that the American administration will begin sending official notifications to trade partners regarding tariffs starting today. All countries are to be subject to the new tariff rates no later than July 9, with no extensions to this deadline.
The new tariff rates will be significantly higher than previously announced — instead of the earlier maximum of 50%, tariffs will range from 10–20% up to 60–70%. The United States has already concluded trade agreements with the United Kingdom and Vietnam and has reached a truce with China. In the case of Vietnam, a 20% tariff was set on direct exports to the U.S., and a 40% tariff applies to goods re-exported by Vietnam from other countries such as China.
Negotiations with Japan, South Korea, and the European Union are ongoing; however, Trump sharply criticized Tokyo, suggesting the possibility of imposing tariffs of 30–35%. The president justifies these actions by citing a lack of fair trade agreements and emphasizes the need to renegotiate cooperation terms. Although importers technically pay the tariffs, the costs are often passed on to consumers in practice.
The market reacted positively to the news of the agreement with Vietnam — shares of U.S. companies operating there rose, indicating investor confidence in the new U.S. trade strategy. Following yesterday’s surprisingly strong Nonfarm Payroll (NFP) employment report (+147,000 vs. 111,000 expected), the market prices in over a 95% chance that interest rates will remain unchanged in July. Meanwhile, the probability of a rate cut in September has dropped below 70%, signaling that the prospect of monetary easing is receding. The EUR/USD currency pair fell below 1.1800, while the NASDAQ 100 technology index rose by 0.85% yesterday. The yield on 10-year U.S. Treasury bonds increased to 4.348%. Today is Independence Day in the United States, so the American stock market will remain closed.
Author: Krzysztof Kamiński – OANDA TMS
Disclaimer: The information contained in this publication is for informational purposes only. It does not constitute financial advice or any other type of advice and is general in nature, not directed to any specific recipient. Before using the information for any purpose, independent advice should be sought.
Source: https://ceo.com.pl/raport-nfp-oddala-wizje-ciec-stop-wraca-grozba-nowych-cel-usa-86473
