Trade talks stall over tariff concerns

Trade discussions between the United States and countries like Japan, India, and the European Union are hitting snags. The main issue is uncertainty about new U.S. tariffs on products like chips, medicines, and steel. These countries are hesitant to sign deals without knowing how much these extra taxes will affect their exports.

The U.S. Commerce Department is investigating industries important for national security, such as semiconductors and critical minerals, and plans to announce results soon. These investigations could lead to new tariffs under a law called Section 232, which would hit a wide range of foreign goods. The fear of these tariffs is making it hard for President Donald Trump’s team to finalize trade agreements before a July 9 deadline.

Without deals, countries face higher “Liberation Day” tariffs, much steeper than the current 10% rate. For example, India is pushing for lower tariffs on its steel and auto parts but isn’t ready to agree without clear U.S. promises. The EU is also worried and might retaliate with its own tariffs if the U.S. imposes new ones. This back-and-forth is slowing down progress, leaving global trade in a tense spot as the deadline looms.