The President of the USA, Donald Trump, will sign a presidential decree on Monday that formally extends the tariff pause, according to the White House spokesperson Karoline Leavitt.
Trump announced the tariffs on April 2 this year, but after an initial week of great concern on the market, they were put on ice for 90 days.
Minister for Foreign Trade Benjamin Dousa calls the message expected and says it does not imply any drama for Sweden's part.
”Hopefully, we can get an EU-USA agreement in place already before August 1. The world economy will be significantly better with more agreements in place and a little stability, instead of hour-by-hour messages via Twitter”, says Dousa in a written comment to TT.
Letters to heads of government
On Monday, Trump has announced several letters that will be sent to countries that lack a trade agreement with the USA. Among other things, Japan and South Korea were informed that 25 percent tariffs will come into force from August 1 if they do not reach an agreement with the USA. This is basically in line with the tariff rates announced on April 2.
According to Leavitt, Trump will announce letters to "about twelve countries" during the day. Among other things, South Africa has been informed that tariffs of 40 percent await.
Then credibility decreases
Per Altenberg at the agency Kommerskollegium says that Monday's tariff message is partly negative, as it breaks against the USA's commitments in the World Trade Organization WTO.
On the other hand, it is positive that the negotiations are being pushed forward again. It indicates that one wants to come to a negotiating solution, he says and continues:
The line that the trade commissioners have represented so far is working so far, to try to move forward with negotiations but also to threaten with countermeasures if they were to fail.
Trump's position can, however, be weakened if he does not make a move.
If it is repeated several times and one pushes it in front of oneself, the credibility of the threat decreases, says Altenberg.
