Impending Tariff Deadline Threatens Multiple Countries with Increased Rates
As the August 1 tariff deadline draws near, a multitude of countries are on the brink of facing significantly escalated US import duties. These countries will be subject to higher tariffs if they fail to secure trade agreements. Commerce Secretary Howard Lutnick has confirmed that there will be “no further extensions or grace periods” post-deadline. However, he hinted that “big economies” could proceed with negotiations whilst adhering to the new rates.
Among the countries still in jeopardy are major US trading partners such as Canada, Mexico, South Korea, and Brazil. Mexico is potentially looking at a 30% tariff on its exports, while South Korea could witness rates soaring to 30% and Brazil to a staggering 50%. Small businesses, representing 97% of US importing companies, are especially susceptible to the repercussions of these trade policy alterations.
The prevailing uncertainty has posed considerable planning challenges for businesses across various industries. One small business owner expressed his concerns, stating, “Not knowing if certain key suppliers will have new trade deals has made it incredibly difficult for retailers of all sizes to properly plan.” The tariff escalation could potentially lead to inflated consumer prices and diminished product availability as companies grapple with absorbing or transferring the additional costs.
Source: CNN Business