The US will impose tariffs on August 1 if no deals are reached.

^{Photo of David Vives in Unsplash}

The Donald Trump administration announced today that, after a 90-day truce granted since April, it will reactivate the suspended tariffs starting in August 1st for those countries that have not reached satisfactory trade agreements. This decision was confirmed by Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick.

Key deadlines and notifications

Negotiations dragged on into this week, largely unresolved. Starting Monday, July 7, the U.S. will begin sending official letters to dozens of countries warning them of the August 1 deadline to close a deal or face steep tariffs, which ranged from 10 % to as high as 70 %, depending on the country.

The European Union, Taiwan, and other major trading partners are in the spotlight if they fail to reach agreements in the coming days. So far, only the United Kingdom and Vietnam have reached agreements exempting them from the new tariffs.

Global reaction and economic context

The decision has generated nervousness in global markets, with US futures and commodity prices showing slight declines. Tensions are rising with the addition of additional tariffs of 10% to countries that align with the policies of the BRICS bloc (Brazil, Russia, India, China, and South Africa), as Trump has warned.

The key will be whether the letters sent this week have any effect and whether the partners can reach renegotiations before the deadline. If not, significant consequences for global trade and possible retaliation are anticipated.

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Sources:

• The Guardian
• Reuters