President Donald Trump told reporters that there are big things coming on trade agreements in the next few days. This announcement follows months of advocacy and negotiation by the U.S. and European Union. As President Trump pointed out, they have accomplished a great deal. In speeches abroad, the President has suggested that the U.S. could complete 12 to 15 such agreements with countries ranging from the Maldives to Morocco.
The announcement comes as Trump doubled down on his administration’s misguided plans to force American consumers to pay more for certain products through tariffs. He’s done this before, as he announced a 90-day pause on tariffs, due to expire July 9, initially. The new deadline for implementation has since been extended to August 1, giving countries another three-week stay of execution.
Trump said, “I think we’ll have all countries finished by July 9, yeah. Either a letter or a settlement.” He will send letters to some U.S. trade partners on Monday, detailing the new tariff rates that will take effect on the specified date. However, these tariffs will only affect goods from approximately 100 smaller foreign countries. The U.S. currently has very small trade with these nations. The President made clear to the public that he would be determining the rates and terms of these agreements over this time period.
Yet during his press conference, Trump was not coy about the purpose of these tariffs, underlining their protectionist nature and three-fold purpose. No, they’re going to be—tariffs, the tariffs—let me just tell you though and I encourage—the tariffs are going to be, the tariffs—” he claimed. Nearly all countries would be subject to some base tariff level of at least 10%. On top of that, other responsibilities can exceed 50%.
Howard Lutnick, chairman and CEO of Cantor Fitzgerald, a venerable staple of financial media, called for the end of Trump’s tariff war. As it stands, tariffs take effect on August 1, but right now the president is the one deciding the rates and cutting the deals.
Together the announcements represent a major, much-anticipated turning point in U.S. trade policy. As the negotiations continue, USTR is focused on reaching agreement that will fundamentally change the terms of international trade. The effects of these tariffs and agreements have yet to be fully realized as both private enterprises and countries start to brace for the changes ahead.