Tariff Deadline Shifts Considered for Certain Countries by White House
In a recent development, Stephen Miran, Chair of the White House Council of Economic Advisers, has expressed optimism about potential trade deals between the United States and several key global economies, including Britain, Vietnam, and India.
During a press conference, Miran highlighted the progress made in negotiations with Britain, stating that a framework agreement has been reached and more trade deals are expected to be announced soon. He noted that these negotiations typically occur in stages and that a culmination of deals is anticipated around early July 2025, coinciding with tariff-related deadlines.
The deal with Vietnam, according to Miran, is "fantastic" and "extremely one-sided" in favour of the U.S., with Vietnam applying zero tariffs to American exports while the U.S. maintains significant tariffs on Vietnamese goods. This model, Miran believes, could set a precedent for future negotiations.
Trade talks with India have also been active, with negotiations aimed at doubling bilateral trade to $500 billion by 2030. India, which has been criticised by President Trump as a "tariff king," has taken steps to lower tariffs on selected products and expressed willingness to reduce or eliminate tariffs on about 55% of its imports from the U.S., subject to reciprocal tariff relief.
Miran remains confident that a number of trade deals will be finalised soon, citing the administration's strategy of using the threat of tariffs as leverage to push countries to open their markets to U.S. goods. He believes that this approach has been effective and that ongoing negotiations, coupled with looming deadlines, will lead to the signing of several agreements.
However, Larry Summers, former Treasury Secretary, has questioned the sustainability of the world's greatest debtor remaining the world's greatest power, given the potential significant addition to the country's debt from these trade deals. Summers also expressed concerns about the bill's benefits primarily going to the top tenth of a percent of the population, while the costs are borne by the majority, leading to higher interest rates, inflation, and a risk of recession for middle-class families.
Despite these concerns, Miran maintains that the economic growth from these deals will not lead to a material long-term decline in revenue, citing the revenue as a share of GDP remaining the same before and after the Tax Cuts and Jobs Act. He also disputes the prediction that 11 million people will lose health care coverage due to Medicaid cuts, citing past inaccuracies.
Miran's optimism reflects a broader push by the Trump administration to secure favourable trade terms and reduce trade deficits, using tariff threats as leverage to gain market access for U.S. exports. The deadline for these trade deals is approaching, and the administration is prepared to extend timelines if necessary but is applying maximum pressure for concessions from trading partners.
- In the interview, Stephen Miran, Chair of the White House Council of Economic Advisers, discussed the approaching trade deadlines and expressed optimism about finalizing several agreements with key global economies.
- Miran, during the press conference, highlighted the potential trade deals with Britain and India, stating that a framework agreement has been reached with Britain and negotiations with India aim to double bilateral trade.
- When asked about health care coverage, Miran disputed the prediction that 11 million people will lose health care coverage due to Medicaid cuts, citing past inaccuracies.
- Despite concerns raised by Larry Summers, former Treasury Secretary, about the potential addition to the country's debt from these trade deals and their impact on the middle class, Miran remains confident that the economic growth from these deals will not lead to a material long-term decline in revenue.
