Trump steps up pressure for deals as US tariff deadline nears
Trump is due to send a first batch of letters to up to 15 trading partners from noon local time (1600 GMT), warning that US levies on imports will snap back to elevated levels if foreign governments fail to reach agreements with Washington.
The duties will not bounce back until August 1, Treasury Secretary Scott Bessent said over the weekend, a move that appears to give more room for dealmaking.
Trump imposed a 10 percent tariff on imports from almost all trading partners in early April, but some economies including the European Union were slated to have this rate increase further.
As markets plunged at the time, Trump halted the steeper levies to allow for talks. That pause expires on Wednesday.
"We are going to have several announcements in the next 48 hours," Bessent told CNBC in an interview Monday.
"We've had a lot of people change their tune in terms of negotiations. So my mailbox was full last night with a lot of new offers, a lot of new proposals," Bessent said.
He reiterated that higher tariff rates for countries would not return until August 1.
There was no immediate response from the White House on whether Trump would formally extend the Wednesday deadline.
Asked about the letters Trump plans to send out, Bessent said these would inform partners of the tariff rate their products face when trading with the United States, unless they want to "come back and try to negotiate."
- Limited results? -
While the Trump administration has signaled hopes of striking dozens of deals by early July, there have been limited results so far.
Washington has unveiled pacts only with Britain and Vietnam, while the United States and China agreed to temporarily lower tariff levels on each other's products that earlier reached three-digits.
Bessent told CNBC Monday that he would "be meeting with my Chinese counterpart sometime in the next couple of weeks."
The two sides have so far held high-level talks in Geneva and London.
But Washington and Beijing's pause on tit-for-tat tariffs is due to expire in mid-August.
On whether he was disappointed in the number of trade deals achieved so far, Trump's trade adviser Peter Navarro maintained that he is "happy with the progress we've had."
"Every country that we run a major deficit with is fully engaged," he told CNBC on Monday.
On Sunday night, Trump wrote on his Truth Social platform that Washington would deliver "tariff letters" or deals to various countries on Monday.
In a separate post that night, Trump threatened another 10 percent tariff on countries aligning themselves with the emerging BRICS nations, accusing them of "Anti-American policies" after they slammed his duties at a summit.
For now, partners are still rushing to avert Trump's tariffs altogether.
The European Commission said that EU chief Ursula von der Leyen had a "good exchange" with Trump on trade when the pair spoke Sunday.
Japan's Prime Minister Shigeru Ishiba, however, said Sunday that he "won't easily compromise" in trade talks with Washington.
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The Advertiser
an hour ago
- The Advertiser
Trump intensifies trade war with threat of new tariffs
President Donald Trump has threatened to impose a 30 per cent tariff on imports from Mexico and the European Union starting in August, after weeks of negotiations with the major US trading partners failed to reach a comprehensive trade deal. In an escalation of a trade war that has angered US allies and rattled investors, Trump announced the latest tariffs in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum on Saturday. Mexican President Claudia Sheinbaum said she was sure an agreement can be reached. "I've always said that in these cases, what you have to do is keep a cool head to face any problem," Sheinbaum said at an event in the Mexican state of Sonora. "(But) there's something that's never negotiable: the sovereignty of our country," she said. Trump sent similar letters to 23 other trading partners this week, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper. The US president said the 30 per cent rate was "separate from all sectoral tariffs", indicating 50 per cent levies on steel and aluminium imports and a 25 per cent tariff on auto imports would remain. The August 1 deadline gives the targeted countries time to negotiate. Some investors and economists have also noted Trump's pattern of backing off his tariff threats. The spate of letters showed Trump has returned to the aggressive trade posture that he took in April when he announced a slew of reciprocal tariffs against trading partners that sent markets tumbling before the White House delayed implementation. But with the stock market recently hitting record highs and the US economy still resilient, Trump is showing no signs of slowing down his trade war. He promised to use the 90-day delay in April to strike dozens of new trade deals, but has only secured framework agreements with Britain, China and Vietnam. The EU has hoped to reach a comprehensive trade agreement with the US for the 27-country bloc. Trump's letter to the EU included a demand that Europe drop its own tariffs. "The European Union will allow complete, open Market Access to the United States, with no Tariff being charged to us, in an attempt to reduce the large Trade Deficit," he wrote. Von der Leyen said the 30 per cent tariffs "would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic". The EU "will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required", she said. Mexico's economy ministry said "it was unfair treatment". Mexico's proposed tariff level is lower than Canada's 35 per cent, with both letters citing fentanyl flows even though government data shows the amount of the drug seized at the Mexican border is significantly higher than the Canadian border. "Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough. Mexico still has not stopped the Cartels who are trying to turn all of North America into a Narco-Trafficking Playground," Trump wrote. Mexico sends more than 80 per cent of its total exported goods to the US and free trade with its northern neighbour drove Mexico to become the top US trading partner in 2023. The EU had initially hoped to strike a comprehensive trade agreement but more recently had scaled back its ambitions and shifted toward securing a broader framework deal similar to the one Britain brokered that leaves details to be negotiated. The bloc is under conflicting pressures as powerhouse Germany urged a quick deal to safeguard its industry, while other EU members, such as France, have said EU negotiators should not cave into a one-sided deal on US terms. Bernd Lange, the head of the European Parliament's trade committee, said Brussels should enact countermeasures as soon as Monday. "This is a slap in the face for the negotiations. This is no way to deal with a key trading partner," Lange told Reuters. President Donald Trump has threatened to impose a 30 per cent tariff on imports from Mexico and the European Union starting in August, after weeks of negotiations with the major US trading partners failed to reach a comprehensive trade deal. In an escalation of a trade war that has angered US allies and rattled investors, Trump announced the latest tariffs in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum on Saturday. Mexican President Claudia Sheinbaum said she was sure an agreement can be reached. "I've always said that in these cases, what you have to do is keep a cool head to face any problem," Sheinbaum said at an event in the Mexican state of Sonora. "(But) there's something that's never negotiable: the sovereignty of our country," she said. Trump sent similar letters to 23 other trading partners this week, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper. The US president said the 30 per cent rate was "separate from all sectoral tariffs", indicating 50 per cent levies on steel and aluminium imports and a 25 per cent tariff on auto imports would remain. The August 1 deadline gives the targeted countries time to negotiate. Some investors and economists have also noted Trump's pattern of backing off his tariff threats. The spate of letters showed Trump has returned to the aggressive trade posture that he took in April when he announced a slew of reciprocal tariffs against trading partners that sent markets tumbling before the White House delayed implementation. But with the stock market recently hitting record highs and the US economy still resilient, Trump is showing no signs of slowing down his trade war. He promised to use the 90-day delay in April to strike dozens of new trade deals, but has only secured framework agreements with Britain, China and Vietnam. The EU has hoped to reach a comprehensive trade agreement with the US for the 27-country bloc. Trump's letter to the EU included a demand that Europe drop its own tariffs. "The European Union will allow complete, open Market Access to the United States, with no Tariff being charged to us, in an attempt to reduce the large Trade Deficit," he wrote. Von der Leyen said the 30 per cent tariffs "would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic". The EU "will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required", she said. Mexico's economy ministry said "it was unfair treatment". Mexico's proposed tariff level is lower than Canada's 35 per cent, with both letters citing fentanyl flows even though government data shows the amount of the drug seized at the Mexican border is significantly higher than the Canadian border. "Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough. Mexico still has not stopped the Cartels who are trying to turn all of North America into a Narco-Trafficking Playground," Trump wrote. Mexico sends more than 80 per cent of its total exported goods to the US and free trade with its northern neighbour drove Mexico to become the top US trading partner in 2023. The EU had initially hoped to strike a comprehensive trade agreement but more recently had scaled back its ambitions and shifted toward securing a broader framework deal similar to the one Britain brokered that leaves details to be negotiated. The bloc is under conflicting pressures as powerhouse Germany urged a quick deal to safeguard its industry, while other EU members, such as France, have said EU negotiators should not cave into a one-sided deal on US terms. Bernd Lange, the head of the European Parliament's trade committee, said Brussels should enact countermeasures as soon as Monday. "This is a slap in the face for the negotiations. This is no way to deal with a key trading partner," Lange told Reuters. President Donald Trump has threatened to impose a 30 per cent tariff on imports from Mexico and the European Union starting in August, after weeks of negotiations with the major US trading partners failed to reach a comprehensive trade deal. In an escalation of a trade war that has angered US allies and rattled investors, Trump announced the latest tariffs in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum on Saturday. Mexican President Claudia Sheinbaum said she was sure an agreement can be reached. "I've always said that in these cases, what you have to do is keep a cool head to face any problem," Sheinbaum said at an event in the Mexican state of Sonora. "(But) there's something that's never negotiable: the sovereignty of our country," she said. Trump sent similar letters to 23 other trading partners this week, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper. The US president said the 30 per cent rate was "separate from all sectoral tariffs", indicating 50 per cent levies on steel and aluminium imports and a 25 per cent tariff on auto imports would remain. The August 1 deadline gives the targeted countries time to negotiate. Some investors and economists have also noted Trump's pattern of backing off his tariff threats. The spate of letters showed Trump has returned to the aggressive trade posture that he took in April when he announced a slew of reciprocal tariffs against trading partners that sent markets tumbling before the White House delayed implementation. But with the stock market recently hitting record highs and the US economy still resilient, Trump is showing no signs of slowing down his trade war. He promised to use the 90-day delay in April to strike dozens of new trade deals, but has only secured framework agreements with Britain, China and Vietnam. The EU has hoped to reach a comprehensive trade agreement with the US for the 27-country bloc. Trump's letter to the EU included a demand that Europe drop its own tariffs. "The European Union will allow complete, open Market Access to the United States, with no Tariff being charged to us, in an attempt to reduce the large Trade Deficit," he wrote. Von der Leyen said the 30 per cent tariffs "would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic". The EU "will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required", she said. Mexico's economy ministry said "it was unfair treatment". Mexico's proposed tariff level is lower than Canada's 35 per cent, with both letters citing fentanyl flows even though government data shows the amount of the drug seized at the Mexican border is significantly higher than the Canadian border. "Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough. Mexico still has not stopped the Cartels who are trying to turn all of North America into a Narco-Trafficking Playground," Trump wrote. Mexico sends more than 80 per cent of its total exported goods to the US and free trade with its northern neighbour drove Mexico to become the top US trading partner in 2023. The EU had initially hoped to strike a comprehensive trade agreement but more recently had scaled back its ambitions and shifted toward securing a broader framework deal similar to the one Britain brokered that leaves details to be negotiated. The bloc is under conflicting pressures as powerhouse Germany urged a quick deal to safeguard its industry, while other EU members, such as France, have said EU negotiators should not cave into a one-sided deal on US terms. Bernd Lange, the head of the European Parliament's trade committee, said Brussels should enact countermeasures as soon as Monday. "This is a slap in the face for the negotiations. This is no way to deal with a key trading partner," Lange told Reuters. President Donald Trump has threatened to impose a 30 per cent tariff on imports from Mexico and the European Union starting in August, after weeks of negotiations with the major US trading partners failed to reach a comprehensive trade deal. In an escalation of a trade war that has angered US allies and rattled investors, Trump announced the latest tariffs in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum on Saturday. Mexican President Claudia Sheinbaum said she was sure an agreement can be reached. "I've always said that in these cases, what you have to do is keep a cool head to face any problem," Sheinbaum said at an event in the Mexican state of Sonora. "(But) there's something that's never negotiable: the sovereignty of our country," she said. Trump sent similar letters to 23 other trading partners this week, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper. The US president said the 30 per cent rate was "separate from all sectoral tariffs", indicating 50 per cent levies on steel and aluminium imports and a 25 per cent tariff on auto imports would remain. The August 1 deadline gives the targeted countries time to negotiate. Some investors and economists have also noted Trump's pattern of backing off his tariff threats. The spate of letters showed Trump has returned to the aggressive trade posture that he took in April when he announced a slew of reciprocal tariffs against trading partners that sent markets tumbling before the White House delayed implementation. But with the stock market recently hitting record highs and the US economy still resilient, Trump is showing no signs of slowing down his trade war. He promised to use the 90-day delay in April to strike dozens of new trade deals, but has only secured framework agreements with Britain, China and Vietnam. The EU has hoped to reach a comprehensive trade agreement with the US for the 27-country bloc. Trump's letter to the EU included a demand that Europe drop its own tariffs. "The European Union will allow complete, open Market Access to the United States, with no Tariff being charged to us, in an attempt to reduce the large Trade Deficit," he wrote. Von der Leyen said the 30 per cent tariffs "would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic". The EU "will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required", she said. Mexico's economy ministry said "it was unfair treatment". Mexico's proposed tariff level is lower than Canada's 35 per cent, with both letters citing fentanyl flows even though government data shows the amount of the drug seized at the Mexican border is significantly higher than the Canadian border. "Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough. Mexico still has not stopped the Cartels who are trying to turn all of North America into a Narco-Trafficking Playground," Trump wrote. Mexico sends more than 80 per cent of its total exported goods to the US and free trade with its northern neighbour drove Mexico to become the top US trading partner in 2023. The EU had initially hoped to strike a comprehensive trade agreement but more recently had scaled back its ambitions and shifted toward securing a broader framework deal similar to the one Britain brokered that leaves details to be negotiated. The bloc is under conflicting pressures as powerhouse Germany urged a quick deal to safeguard its industry, while other EU members, such as France, have said EU negotiators should not cave into a one-sided deal on US terms. Bernd Lange, the head of the European Parliament's trade committee, said Brussels should enact countermeasures as soon as Monday. "This is a slap in the face for the negotiations. This is no way to deal with a key trading partner," Lange told Reuters.
The Age
an hour ago
- The Age
Trump intensifies trade war with threat of 30 per cent tariffs on EU, Mexico
Washington/Mexico City: US President Donald Trump has threatened to impose a 30 per cent tariff on imports from Mexico and the European Union starting on August 1, after weeks of negotiations with the major US trading partners failed to reach a comprehensive trade deal. In an escalation of a trade war that has angered US allies and rattled investors, Trump announced the latest tariffs in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum that were posted on his Truth Social media site on Saturday. The EU and Mexico, both among the largest US trading partners, responded by calling the tariffs unfair and disruptive while pledging to continue to negotiate with the US for a broader trade deal before the deadline. Sheinbaum said she was sure an agreement could be reached. 'I've always said that in these cases, what you have to do is keep a cool head to face any problem,' Sheinbaum said at an event in the Mexican state of Sonora. 'We're also clear on what we can work with the United States government on, and we're clear on what we can't. And there's something that's never negotiable: the sovereignty of our country.' Loading Trump sent similar letters to 23 other trading partners this week, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper. The US president said the 30 per cent rate was 'separate from all sectoral tariffs', indicating 50 per cent levies on steel and aluminium imports and a 25 per cent tariff on auto imports would remain.
Sydney Morning Herald
an hour ago
- Sydney Morning Herald
Trump intensifies trade war with threat of 30 per cent tariffs on EU, Mexico
Washington/Mexico City: US President Donald Trump has threatened to impose a 30 per cent tariff on imports from Mexico and the European Union starting on August 1, after weeks of negotiations with the major US trading partners failed to reach a comprehensive trade deal. In an escalation of a trade war that has angered US allies and rattled investors, Trump announced the latest tariffs in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum that were posted on his Truth Social media site on Saturday. The EU and Mexico, both among the largest US trading partners, responded by calling the tariffs unfair and disruptive while pledging to continue to negotiate with the US for a broader trade deal before the deadline. Sheinbaum said she was sure an agreement could be reached. 'I've always said that in these cases, what you have to do is keep a cool head to face any problem,' Sheinbaum said at an event in the Mexican state of Sonora. 'We're also clear on what we can work with the United States government on, and we're clear on what we can't. And there's something that's never negotiable: the sovereignty of our country.' Loading Trump sent similar letters to 23 other trading partners this week, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper. The US president said the 30 per cent rate was 'separate from all sectoral tariffs', indicating 50 per cent levies on steel and aluminium imports and a 25 per cent tariff on auto imports would remain.
