Trump Says Tariff Deadline Extended to August 1

The Trump administration has again shifted its trade policy timeline, setting August 1 as the new date for the return of tariffs on countries without finalized trade agreements with the U.S., Treasury Secretary Scott Bessent confirmed on Sunday.

This announcement pushes back the previously established July 9 deadline, offering a brief reprieve for dozens of countries still negotiating with Washington, but also introduces further volatility for global trade and U.S. importers, many of whom are already facing elevated tariff rates.

“If you don’t move things along, then on August 1st, you will boomerang back to your April 2 tariff level,” Bessent said on CNN’s State of the Union.

A Mixed Signal on Trade Policy

While initially framed as a 90-day pause following the April 2 tariff order, administration officials now stress the August 1 implementation date is not a negotiation extension, but a fixed deadline.

“We are saying this is when it’s happening,” Bessent noted. “If you want to speed things up, have at it.”

President Trump echoed the urgency, stating the White House would begin issuing letters outlining the tariff rates to 12–15 countries starting Monday, July 8. Rates will range between 10% and 70%, depending on the country and trade activity.

However, confusion persists. On Fox and CBS interviews, senior officials offered conflicting comments on whether flexibility remains. National Economic Council Director Kevin Hassett hinted that “some things will push past the deadline,” suggesting that key U.S. partners may still be granted leeway.

Who’s Affected and How?

So far, the Trump administration has only reached firm agreements with the United Kingdom, Vietnam, and a limited deal with China. Negotiations continue with India and the European Union, which may secure exemptions if deals are finalized in time.

The stakes are high for smaller economies. As Bessent explained, about 100 low-volume trade partners will receive formal warnings, with no exemptions for countries aligned with blocs like BRICS.

“Any country aligning with the anti-American policies of BRICS will be charged an additional 10% tariff,” Trump posted on Truth Social.

Reaction and Market Volatility

The business community has expressed concern over shifting deadlines and unclear policy signals. In markets, the renewed uncertainty pushed down equities and commodities early this week:

• Japan’s Nikkei fell 0.3%, South Korea’s KOSPI slipped 0.7%
• Copper dropped 0.6%, Aluminum slid 1.1%
• U.S. retailers and manufacturers are bracing for import cost spikes

Supporting this, Maersk reported that U.S. containerized imports are facing an effective 21% average tariff, a sharp drop from the 54% peak in April, but still a substantial burden. The Danish shipping giant cautioned that trade visibility has declined, with companies shifting sourcing strategies as a long-term hedge against policy risk.

Trade Still in Motion, But on Unsteady Ground

Negotiators remain engaged in finalizing up to 15 trade agreements, according to Bessent. Still, with just a few signed, and new tariff threats looming, importers face a difficult operating environment heading into August.

Source: Politico | The Guardian | FreightWaves