The United States increases pressure on countries before the trade agreement deadline – Country
The Trump administration is increasing pressure on trading partners to quickly reach new deals by Wednesday’s deadline and plans to send letters to warn countries on Monday that higher tariffs could be issued on August 1.
This further increases uncertainty among businesses, consumers and U.S. trading partners, and questions about which countries will be notified, whether any changes will occur in the days ahead, and whether President Donald Trump will push for the imposition of interest rates again. Trump and his top trade advisers say he can extend the deal, but they insist that the administration is putting the greatest pressure on other countries.
White House National Economic Commission Director Kevin Hassett told CBS on Sunday that Trump will decide when to give up on negotiations.
“The United States is always willing to talk about everything with everyone,” Hassett said. “There are deadlines, and some things are close, so maybe things will be postponed to the deadline, or maybe not. Eventually, the president will make a judgment.”
Stephen Miran, chairman of the White House Economic Advisory Council, also said that countries that negotiate in good faith and make concessions are “a bit like a date.”
President Donald Trump declared that the steeper tariffs on April 2 threatened to reform the global economy and lead to a broader trade war. A week later, after the financial markets panic, his government suspended most of the import taxes for 90 days, just as if they were in effect. The negotiation window was not until July 9 that it led to the announcement of a deal with the UK and Vietnam only.
Trump imposed increased tariffs on dozens of countries with meaningful trade surpluses with the United States and imposed a baseline tax of 10% on import rates for all countries in response to what he called an economic emergency. There is a 50% tariff on steel and a 25% tariff on automobiles.
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Since April, few foreign governments have established new trade terms with Washington due to the Republican president’s request.
Trump told reporters earlier Friday that his administration may send letters to the country as early as Saturday that they will start collecting those taxes by August 1 to August 1 if they don't make a deal. He said on Friday night he said he “maybe send 10 or 12 letters on Monday”, each sending 10 or 12 letters on Monday, each reflecting “different amounts, different vote counts, different situations” and some different statements and some different statements.”
He and his advisers declined to say which countries would receive the letter.
Treasury Secretary Scott Bessent rejected the idea that August 1 is a new deadline, refusing to disclose what could happen on Wednesday.
“We'll see it,” Bessent said on CNN's national status. “I won’t give up on the script.”
He said the U.S. was “close to several deals” and predicted several major announcements in the next few days. He provided no details.
“I think we're going to see a lot of deals soon,” Bescent said.
Trump announced a deal with Vietnam that would allow U.S. goods to be included in the country, while Vietnam's exports to the United States would face a 20% tax.
That's a 46% tax on his proposed Vietnam import tax in April, one of his so-called reciprocity tariffs targeting dozens of countries where the U.S. is experiencing a trade deficit.
Asked if he expects a deal with the EU or India, Trump said on Friday that the letter is in our favor, as there are many countries involved.
“We have India coming, along with Vietnam, we did, but sent a letter saying, 'Listen, we know we have a certain deficit, or in some cases it's surplus, but not too much. That's what if you want to do business in the US, that's what you have to pay for.'
But Canada will not be one of the countries that have received the letters after Trump's ambassador Pete Hoekstra Friday's recent trade talks between the two countries.
“Canada is one of our largest trading partners,” Hoekstra told CTV News in an interview in Ottawa. “We will make a clear deal.”
Canadian Prime Minister Mark Carney said he hopes to reach a new deal by July 21, otherwise Canada will increase trade countermeasures.
Hoekstra will not promise a date for a trade agreement, and even if an agreement is reached, Canada may still face some tariffs. But “we won’t just send Canada one letter,” he said.
– Reported by Bridgewater, NJ. Matt O'Brien, an AP business writer in Providence, Rhode Island, contributed to the report.
& Copy 2025 Canadian Press
