Song Xuetao: What will happen after the expiration of the tariff exemption date?

date
05/07/2025
avatar
GMT Eight
With the July 9 deadline for tariff exemptions approaching, the United States has accelerated the negotiation process.
As the deadline for tariff exemptions on July 9 approaches, the United States has accelerated the negotiation process. Kevin Hassett, Director of the White House National Economic Council, recently stated that trade negotiations between the United States and several countries have entered the final stage, but the announcement of related agreements will be delayed until after the passage of the "Great American Law". It is expected that a series of trade agreements will be announced gradually from July 4 onwards. Hassett and Lutnick also stated that the White House expects to finalize agreements with several major trading partners before July 9. Previously, trade negotiations between the United States and other countries progressed slowly, mainly because the U.S. demands were not clear enough, hindering the negotiation process. Currently, the United States has gradually clarified specific requirements for some non-U.S. countries, and whether these demands can be met will be a decisive factor in reaching an agreement by July 9. I. What are the demands of the United States in the tariff game? The United States uses "reciprocal tariffs" as a negotiation leverage, aiming to increase government revenue, reduce fiscal spending, attract foreign investment into the U.S., strengthen supply chain security, and create a more favorable global business environment for American enterprises. Demand 1: Expand U.S. exports of goods Trump's main purpose for imposing "reciprocal tariffs" this time is to reduce the trade deficit, and the most direct way to achieve this goal is to promote U.S. exports of goods. This requires trading partners to take corresponding measures, including lowering tariffs, expanding market access for U.S. goods, and reducing non-tariff barriers. In trade frictions, the initiating country of tariffs often faces the risk of retaliation, as seen in the Smoot-Hawley Tariff Act passed by the U.S. in 1930, which imposed tariffs of up to 60% on over 20,000 imported goods, leading to quick retaliation from countries like Canada, Cuba, Mexico, etc., and sparking a global trade war. Taking a... Please let me know if you would like me to continue with the translation.