US Treasury Secretary Warns of Possible Resumption of High Tariffs on July 9; EU and Canada Urgently Initiate Talks

The deadline for US trade negotiations is approaching, and Trump previously stated that he would not consider postponing the tariff negotiation period. However, tariff pressures have already caused prices of Chinese-made goods to rise.

US Treasury Secretary Bensont warned that despite the sincerity of negotiations by various countries, the US may resume implementing significant tariffs on July 9, with rates as high as 50%. Bensont pointed out that any possibility of extending the negotiation period will depend on President Trump's final decision.

Bensont said in an interview with Bloomberg Television on Monday that he expected a "wave of transactions" before the July 9 deadline. However, he warned that if countries delay or backtrack during negotiations, the US will follow its tariff adjustment plan announced on April 2nd, raising the current 10% base tariff to between 11% and 50%.

"We do have some countries negotiating in good faith, but they should realize that if we ultimately fail to reach an agreement, it won't be due to our side, and we may revert to the tariff levels announced on April 2nd. I hope that doesn't happen," Bensont said.

Trump previously stated that he would not consider postponing the tariff negotiation period. Amid increasing US trade pressure, Canada chose to make concessions. White House economic advisor Hasset said that Canada has canceled its planned digital services tax, which was set to take effect today, and the US will immediately resume trade negotiations with Canada.

"Of course, negotiations will resume," Hasset said in an interview with Fox News. He revealed that Trump had directly asked Ottawa to withdraw its tax plan targeting US tech giants during the G7 summit in Canada, and now Canada has agreed, allowing both sides to return to the negotiation table.

Additionally, The Guardian reported that EU Trade Commissioner Cecilia Malmström will fly to Washington for trade negotiations on Tuesday. He stated that the EU has received the first draft of the US' final agreement proposal, and this visit aims to focus on "achieving positive results." According to Reuters, Malmström said the EU is pushing for an import tax agreement that is "fair to both sides" and provides more predictability for businesses.

At the same time, the tariff pressure is beginning to be passed on to American consumers. According to a study conducted by data analysis company DataWeave for Reuters, the median price of Chinese-made goods on Amazon increased by 2.6% from January to mid-June this year, exceeding the 1% increase in core commodity inflation during the same period.

DataWeave analyzed over 1,400 Chinese-made products, including electronics, school supplies, and household items. Some price increases were significant, with the study showing that price increases accelerated starting in May, particularly for furniture and electronic categories, which rose by 3.5% and 3.1%, respectively.

DataWeave CEO Betadapra told Reuters that even moderate tariffs "can quickly be passed on to retail prices under limited profit margins and short restocking cycles."

Amazon said product price changes are still within normal fluctuation ranges, and many large retailers such as Walmart, Macy's, and Nike have already warned or taken pricing measures.

Despite rising inflation pressures, US retailers remain cautious about passing on costs. US retail trade sales fell by 0.9% in May, and consumer spending unexpectedly declined, indicating that high interest rates and weak consumer confidence remain influencing factors.

Original article: https://www.toutiao.com/article/1836397006976331/

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