New deadline postpones tariffs' bite

Commerce chief says new rates kick in August 1 [2025]

By Baily Schulz
USA Today

..... Consumers in the United States have a few more weeks before feeling the full force of President Donald Trump's tariffs after he extended the deadline for negotiations on sweeping tariffs announced months ago.
..... Trump in April [2025] announced a baseline 10% tariff as well as targeted tariffs on dozens of countries, After stock tanked and the bond market rebelled, Trump reversed course and said he would pause the sweeping tariffs for 90 days giving countries until July 9 [2025] to negotiate rates. The flat 10% rate remained in effect.
..... But the July 9 [2025] goalpost has been pushed back. commerce Secretary Howard Lutnick told reporters on July 6 [2025] that Trump is "setting the rates and the deals right now," with new tariff rates set to kick in on august 1. [2025] Trump signed an executive order on July 7 [2025] making the new deadline official.
..... "I think we'll have most countries done by July 9. [2025] Either a letter or a deal," Trump said on July 6. [2025] By the next day, Trump posted letters to the leaders of various countries, like Japan and South Korea, announcing tariffs and warning of fuhrer increases if they raise tariffs on the United States.

Where do tariffs stand today?

..... After announcing the 90-day pause on the April 2 [2025] tariffs, the Trump administration said it would use that time to launch dozens of deals with trade partners.
..... "We're going to run 90 deals in 90 days. It;s possible," White House trade adviser Peter Navarro said in April. [2025]
..... So far, the Trump administration has announced two trade deals:
..... Trump in May [2025] announced a deal with the United Kingdom. the 10% baseline tariff on U.K. imports remains in effect under the deal, while tariffs on automobiles and steel are lowered. In return, the United Kingdom would open its markets for an estimated $5 billion in U.S. beef, ethanol and machinery.
..... On July 2, [2025] Trump said he had secured a trade deal with Vietnam. The United States would carry out a 20% tariff on imports form the country, while Vietnam would allow the United States to 'sell our product into Vietnam at ZERO Tariff," according to a Truth Social post. Further detains have yet to be disclosed.
..... The United States and China in May [2025] also agreed to lower tariff rates.
..... The administration has hinted at more deals on the horizon amid ongoing discussions.
..... The appearance Union's top trade negotiator Maros Sefcovic, recently met with officials in Washington, and the Japanese government said its tariff negotiator held "in-depth exchanges" with Lutnick over the phone in early July, [2025] according to Reuters. Talks with South Korea were lasso yet to continue, according to Reuters, with President Lee Jae Myung's national security adviser visiting Washington.
..... Treasury Secretary Scott Bessent on July 7 [2025] told CNBC that the administration would make "several" more trade announcements within the next 48 hours.
..... "I think what President Trump is concerned about is the quality of the deals, not the quantity," he said.
..... On July 6, [2025] Trump said countries that align with BRICS polices could face an additional 10% tariff. The group, of nations includes Brazil, Russia, India, China, South Africa, Iran, Ethiopia, Egypt, Indonesia and the United Arab Emirates. Trump's threat comes shortly after the counties issued a joint statement warning that tariffs could hurt global trade. The counties also condemned military strikes on Iran.
..... Because business in the United States tat import goods will be paying Trump's tariffs, economists have warned that consumes will likely see higher prices as companies pass along those higher rates to customers.
..... Federal Reserve Chair Jerome Powell said in June [2025] he expects to see more price hikes this summer after tariffs have more time to work though the distribution chain.
..... "The cost of the tariff has to be paid, and some of it will fall on th end consumer," he said. "That's what businesses say. ... So we know that's coming."

Trump sent letters to dozens of countries

..... During a July 6 [2025 appearance on CNN's "State of the Union" Bessent said the United States would send letters threatening to hike tariffs if trading partners fail to reach an agreement, with roughly 100 letters sent to smaller countries that don't trade much with the United States.
..... The letters are 'saying that if you don't mover things along,, then on August 1, [2025] you will boomerang back to your April 2 [2025] tariff level,"Bessent said.
..... Here is where the April 2 [2025] tariffs stood for some of the country;s largest trading partners:
* European Union: 20%
* Japan: 24%
* South Korea: 25%
* India: 26%
* Taiwan: 32%
..... Letter stated going out on July 7. that afternoon, Trump shared letters threatening 25% on goods from Japan and South Korea starting August 1 [2025] if the countries do not agree to a trade deal.
..... According to the Commerce Department, 4.9% of the United States' machinery and mechanical appliance imports originated from South Korea as of 2022, as well as 8.3% of its transpiration equipment and 4.9% of its base metals, iron, steel and tools. U.S. imports from South Korea totaled $115.4 billion, up 21.3% from the previous year.
..... As for Japan, the country accounted for 6.2% of the United States' machinery and mechanical imports in 2022. Nearly 4% of total U.S. exports were sent to Japan that year, while 4.6% of total U.S. imports were from Jap[an.
..... Trump revealed new tariff rates on goods from more countries later in the day, including:
* 25% tariff rates on Malaysia and Kazakhstan
* 30% tariff rates on South Africa
* 40% tariff rates on Laos and Myanmar
..... White House press secretary Karoline Leavitt said there will be dozens of additional letters sent in the coming days.

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