Bloomberg Daybreak: Asia Edition The Race for US Trade Deals as Tariff Deadline Nears
US Tariff Deadline Sparks Urgency and Murky Trade Negotiations in Asia
As the US July 9th tariff deadline looms, major trading partners in Asia including Japan, South Korea, India, and Vietnam are rushing to secure trade deals or seek extensions to avoid steep tariffs.
Treasury Secretary Besson suggested a possible three-week extension for some countries still negotiating, highlighting unresolved sticking points despite ongoing talks. Vietnam’s partial tariff agreement, with a complex 20% tariff and a 40% tariff on Chinese transshipments, underscores the US strategy to pressure China by reshaping regional supply chains.
Markets remain cautious, as the US begins sending letters on impending tariffs to 12-15 partners with mixed outcomes expected. This scenario reflects both US leverage needs for partners like Vietnam and the persistent friction in US-China and broader Asia-Pacific trade relations.
US Trade Deadline Complexity
- The rush to secure US trade deals highlights complexities and limited progress by the July 9 deadline.
- Treasury Secretary Bessent hinted at a possible three-week extension to negotiate stuck agreements.
Vietnam Deal Targets China Transshipments
- The Vietnam deal showcases US efforts to curb Chinese transshipments via higher tariffs.
- Markets expect Chinese manufacturers to find ways to bypass or manage these tariffs through supply chain adjustments.