With the self-imposed Aug. 1 deadline approaching to make trade deals with foreign powers, President Donald Trump’s “Art of the Deal” might be facing one of its greatest tests yet.
The administration has previously promised to reinstate substantial tariffs if countries don’t reach a deal with the United States by August.
“No extensions, no more grace periods. Aug. 1, the tariffs are set,” said Secretary of Commerce Howard Lutnick of the trade ultimatum in an appearance on “Fox News Sunday.”
Shortly after the rollout of sweeping tariffs in March, the Trump administration lowered tariffs for most nations to a baseline of 10%, with the exception of China, which faced 125% tariffs.
The administration set a June 9 deadline for countries to reach an agreement before the originally proposed tariffs were reimposed, a deadline that has since been extended to August.
The president on Sunday agreed to a framework with the European Union under which the United States would tariff most EU goods 15% and Europe would commit to purchasing hundreds of billions of dollars’ worth of American exports while dropping some of its tariffs.
If finalized, this agreement would be among the biggest triumphs of the Trump negotiating team thus far.
The United States agreed to a trade deal with the United Kingdom in June, and China and the United States have, at least for now, de-escalated trade tensions. Secretary of the Treasury Scott Bessent was in talks with Chinese officials Monday in Stockholm, Sweden.
China has an Aug. 12 deadline to reach a deal with the United States before the tariff truce expires.
The United States has also reached agreements with Japan, Vietnam, the Philippines, and Indonesia.
Now, with the Aug. 1 deadline just around the corner, it remains unclear what measures will be put in place—if trade frameworks count as trade deals and if the originally proposed tariff levels will be applied.