US Administration Signals Potential Tariffs for 18 Trade Partners
Focus on "Good Faith" (whatever it means) Negotiations as Key to Avoiding Increased Duties
The United States administration has informed 18 of its key trade partners, including Thailand, that they may face reinstated tariffs if negotiations are not conducted in what officials describe as 'good faith.' The announcement follows a series of tariff adjustments initiated by former President Donald Trump, who originally imposed tariffs on various imports beginning April 2, 2018.
In a separate decision on April 9, 2018, tariffs were lowered on most imported goods to 10% for a period of 90 days, allowing time for negotiators to reach agreements with other countries.
The rate for Chinese goods was reduced significantly to 30%.
Recent communications from the administration indicate that letters will be sent to countries not seen as negotiating in good faith, establishing the expectation that 'good faith' negotiations are critical for any prospective deals.
Deputy National Security Advisor Bessent emphasized that the country’s trade relationships are contingent upon the willingness of these nations to engage constructively in negotiations.
Bessent specifically stated that countries would receive notifications detailing the tariff rates they would face if negotiations fail.
He indicated that these countries would likely see their tariff rates revert to those initially set in April 2018.
While Bessent refrained from providing specific timelines for the announcements of any new trade deals, he reiterated that their timing is directly tied to the perceived commitment of foreign governments to negotiate earnestly.
The administration’s focus remains on maximizing the effectiveness of its trade policies with these designated partners, spotlighting the intricate balance of strategy involved in international trade relations.
In a separate decision on April 9, 2018, tariffs were lowered on most imported goods to 10% for a period of 90 days, allowing time for negotiators to reach agreements with other countries.
The rate for Chinese goods was reduced significantly to 30%.
Recent communications from the administration indicate that letters will be sent to countries not seen as negotiating in good faith, establishing the expectation that 'good faith' negotiations are critical for any prospective deals.
Deputy National Security Advisor Bessent emphasized that the country’s trade relationships are contingent upon the willingness of these nations to engage constructively in negotiations.
Bessent specifically stated that countries would receive notifications detailing the tariff rates they would face if negotiations fail.
He indicated that these countries would likely see their tariff rates revert to those initially set in April 2018.
While Bessent refrained from providing specific timelines for the announcements of any new trade deals, he reiterated that their timing is directly tied to the perceived commitment of foreign governments to negotiate earnestly.
The administration’s focus remains on maximizing the effectiveness of its trade policies with these designated partners, spotlighting the intricate balance of strategy involved in international trade relations.
