The White House said today that the previously set July 9 tariff deadline would be postponed, with new warning letters set to be issued to trading partners ahead of a fresh August 1 deadline.
These letters will notify countries that increased tariffs will be imposed unless trade agreements are reached.
U.S. President Donald Trump has made it clear that without progress in negotiations, import taxes could revert to their earlier, higher levels — ranging from 10% to 50% — on a wide array of goods. The tariffs had been paused in April for 90 days to allow for dialogue, according to dw.com
“President Trump is sending letters to some of our trading partners saying that if they don’t move quickly, then on August 1 they’ll revert to the April 2 tariff levels,” said U.S. Treasury Secretary Scott Bessent during an interview with CNN’s State of the Union on Sunday. “I think we’re going to see a lot of deals very quickly.”
The White House, today, named Japan and South Korea as the first two countries to face the renewed tariffs, with a 25% duty set to go into effect on August 1 unless agreements are reached.
Bessent clarified that the August 1 date is not a new negotiation deadline but rather a firm implementation date. “If you want to accelerate talks, go ahead. If you want to revert to the old rate, that’s your choice,” he said.
The European Union is among the trading partners at risk. Without a deal, tariffs on EU goods could soar to 50%, impacting a broad range of exports, from French cheese to German electronics. EU and U.S. trade negotiators spent the weekend in discussions aimed at averting a tariff escalation.
Bessent noted the administration is applying “maximum pressure” and said talks with the EU are now showing “very good progress” after a slow start. He also indicated that the U.S. is “close to several deals” and hinted at major trade announcements in the coming days.
Trade agreements have already been secured with the United Kingdom and Vietnam. Meanwhile, the European Union says it is hopeful for a deal but is prepared to retaliate with tariffs on U.S. exports if necessary.
EU data shows that trade in goods and services between the U.S. and EU reached €1.7 trillion ($2 trillion) in 2024, averaging €4.6 billion in daily exchanges.
