Tariffs at a crossroads: Are the US introducing new tariffs on July 9? Millions in uncertainty, inflation on the horizon

The temporary freeze on US tariffs, introduced on April 2 under the slogan „Liberation Day“ by the administration of President Donald Trump, expires on July 9. This is a 90-day pause which, if not extended, could cause serious consequences for the US and global economies.

If no new trade agreements are reached, tariffs on imports from certain countries could rise to 49%, while the basic universal tariff would remain at 10%. Chinese products could again be hit with tariffs of 30% or even more, compared to earlier temporary rates that reached as high as 145TP3T.

President Trump has made it clear that he does not plan to extend the deadline, and new trade partnerships have been confirmed so far with countries such as China, the U.K., and Vietnam. However, the status of numerous other agreements remains unknown.

Experts, such as Clark Packard from the Cato Institute, warn that a sudden increase in tariffs could lead to new inflation, make it harder for small businesses to operate, and cause market uncertainty. On the other hand, extending the tariff freeze without final agreements prolongs economic uncertainty.

Patrick Childress from the firm Holland & Knight states that countries are likely to be divided into three groups: those that have reached an agreement, those that will remain under baseline tariffs, and those that will face the highest tariffs.

For countries like Vietnam, the agreement entails a 20% tariff, with an additional 40% on goods transiting from third countries, while the U.S. gains tariff-free access to the Vietnamese market. A similar "breakthrough" agreement has also been announced with the U.K.

However, certain countries, such as EU members, which account for 25% of American exports, may not agree to the terms under pressure, further complicating the situation.

The fate of these tariffs could become even more complicated, given that the US Court of International Trade ruled in May that most of the tariffs were illegal, although that decision is currently blocked on appeal in Washington.

As the world watches July 9 with apprehension, all eyes are on the White House's next move. Will there be another extension, or are we entering a new era of a trade war?

SOURCE: CBS News PHOTO: YOUTUBE SCREENSHOT