 "US President Donald Trump boards Air Force One at Morristown Airport as he departs for Washington, in Morristown, New Jersey, US, July 6, 2025. File Image/Reuters")
President Trump has pressed ahead with plans to raise tariffs on America’s trading partners, but his original July 9 deadline for imposing new “reciprocal” tariffs has now been delayed to August 1 for most countries. \
The White House said the extension is meant to allow more time for negotiations, but limited progress so far suggests Trump may have been forced to push back the timeline to avoid economic turmoil and diplomatic backlash.
Despite Trump’s earlier pledge to secure “90 deals in 90 days,” only two preliminary agreements have been reached so far – one with Britain and one with Vietnam. Both are broad frameworks rather than full trade pacts and still require further negotiations.
The deal with Vietnam includes a 20 per cent minimum tariff, which is lower than the threatened 46% but higher than the previous 10 per cent base rate during the tariff pause.
A temporary truce has also been struck with China, where both sides agreed to roll back some tariffs for now.
Two more deals in works
Talks with India and the European Union are ongoing but remain unresolved: Negotiations with India are stuck over US demands for greater access to India’s agriculture and dairy markets. The European Union is considering accepting a 10 per cent tariff on cars but wants exemptions for other sectors.
Trump has sent letters to 13 countries that haven’t reached deals, warning that new tariffs ranging from 10 per cent to 70 per cent will start on August 1 if no agreements are reached. Major allies of the United States like Japan and South Korea were among the first to receive these notices.
Impact Shorts
View AllOn top of that, Trump has threatened an extra 10 per cent tariff on countries aligning with “anti-American” BRICS policies, though details remain unclear.
The looming tariffs have fueled uncertainty in global markets and heightened diplomatic tensions. Economists caution that sharp tariff increases could risk triggering a global recession, although US markets have stayed relatively stable during the current pause.
Ultimately, while the White House frames the delay as a negotiation tactic, the lack of finalized deals and growing international pressure strongly suggest that Trump was forced to extend his tariff deadline to avoid immediate economic and diplomatic fallout.