Taco time again? Has Trump's July 9 tariff deadline quietly slipped to August 1?

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Donald Trump's evolving tariff rollout has resulted in confusion as a July 9 deadline now appears to have shifted to August 1. While letters and deals are being sent out, mixed messages from officials, Brics backlash and market turbulence have added fuel to what critics call the 'Taco trade' — Trump's on-again, off-again tariff diplomacy read more
US President Donald Trump boards Air Force One at Morristown Airport as he departs for Washington, in Morristown, New Jersey, US, July 6, 2025. File Image/Reuters
United States President Donald Trump's latest tariff directives have resulted in a bit of confusion about when new US trade duties will actually come into effect.
Initially expected to be enforced on July 9, recent statements by both Trump and his top officials suggest that the actual implementation date may now be August 1.
Trump's tariff campaign traces back to April 2 when the administration unveiled a plan to introduce a base duty of 10 per cent on goods from nearly all US trading partners, with the potential for significantly higher rates — up to 50 per cent — for specific countries.
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However, the administration announced a pause in implementing these steeper tariffs, setting July 9 as the interim deadline for trade negotiations.
Either a letter or a deal
As the supposed July 9 deadline approaches, Trump addressed reporters, saying the administration was set to dispatch formal communications to various countries. 'It could be 12, maybe 15 [letters],' he noted.
'And we've made deals also, so we're going to have a combination of letters and some deals have been made.'
He also commented on when the tariffs would become effective. 'I think we'll have most countries done by July 9, yeah. Either a letter or a deal.'
However, the timing appeared unclear, prompting US Commerce Secretary Howard Lutnick to interject, 'But they go into effect on August 1. Tariffs go into effect August 1, but the president is setting the rates and the deals right now.'
Adding further clarity, Trump posted on Truth Social that 'the US would begin delivering 'TARIFF Letters, and/or Deals' from 12pm ET on Monday.'
In a separate post, he announced a new policy targeting the Brics group, stating, 'Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy.'
How Brics has responded
The response from Brics nations — Brazil, Russia, India, China and South Africa — was swift.
Following their summit in Brazil, the group issued a collective statement expressing 'serious concerns about the rise of unilateral tariff' practices, warning that such measures could jeopardise global trade and economic stability.
Several newer Brics members — Egypt, Ethiopia, Iran, Indonesia, Saudi Arabia and the United Arab Emirates — are also watching the situation closely.
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While Trump has built strong diplomatic ties with some of these states, such as Saudi Arabia and the UAE, his tariff warning to Brics as a whole raised new uncertainties about ongoing trade discussions, especially with India and Indonesia.
Meanwhile, the markets were quick to react. Uncertainty surrounding the exact start date and conditions of the new tariffs caused declines in Asian stock indices.
Japan's Nikkei shed 0.3 per cent, South Korea's main index slipped 0.7 per cent, and MSCI's index of Asia-Pacific shares excluding Japan fell by 0.1 per cent.
A lot of deals very quickly
US Treasury Secretary Scott Bessent reiterated the administration's strategy in multiple interviews.
He said that the president would be sending tariff notices to up to 100 smaller trading partners, particularly those with minimal trade volumes with the US, informing them of pending hikes unless agreements were finalised.
'President Trump's going to be sending letters to some of our trading partners saying that if you don't move things along, then on August 1 you will boomerang back to your April 2 tariff level,' Bessent told CNN.
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'So I think we're going to see a lot of deals very quickly.'
He also stated that negotiations were making progress with several key nations, especially those contributing heavily to the US trade deficit.
'We are close to several deals,' Bessent said. 'I would expect to see several big announcements over the next couple of days.'
Among the countries cited as nearing agreement were the European Union, India and Thailand. Talks with the EU had recently accelerated, with negotiators working through the weekend and France's finance minister expressing hope for a deal.
Vietnam and the UK seal agreements, India expected next
The US has already struck framework trade deals with the United Kingdom and Vietnam. The Vietnam deal, according to White House Council of Economic Advisers Chairman Stephen Miran, heavily favoured the US.
'It's extremely one-sided. We get to apply a significant tariff to Vietnamese exports. They're opening their markets to ours, applying zero tariff to our exports,' he said on ABC News.
Negotiations with India were reportedly nearing conclusion. Citing unnamed officials, CNBC-TV18 reported that India and the US were expected to finalise a mini trade agreement within 24 to 48 hours, likely involving an average 10 per cent tariff rate on Indian exports to the US.
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Thailand, also eager to avoid a steep 36 per cent tariff rate, has offered increased market access for US agricultural and industrial goods, in addition to pledging to purchase more US energy and Boeing aircraft, Thai Finance Minister Pichai Chunhavajira told Bloomberg News.
Is this an instance of Trump going 'Taco' again?
Amid all this, a new term coined by Financial Times columnist Robert Armstrong — 'TACO trade' — has gained attention in financial circles.
The acronym, short for 'Trump Always Chickens Out,' reflects a market strategy where investors buy the dip caused by tariff threats under the assumption that Trump will eventually walk them back.
Trump appeared visibly annoyed when a reporter asked about the term on May 28. 'You ask a nasty question like that. It's called negotiation,' he replied, adding, 'We had a dead country … people didn't think it was going to survive, and you ask a nasty question like that.'
Despite his frustration, the Taco trade concept has taken off on social media, spawning memes and AI-generated images of Trump as a taco or in chicken costumes.
Analysts point out that since taking office, Trump has issued over 50 changes to trade duties — many of which were short-lived or retracted.
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This erratic behaviour, while sometimes effective in securing concessions, has generated considerable volatility in financial markets and uncertainty among US trade partners.
The deadline that wasn't a deadline
National Economic Council Director Kevin Hassett, speaking to CBS, noted that there may be flexibility in the timeline for countries engaged in 'earnest negotiations.'
He explained, 'There are deadlines, and there are things that are close, and so maybe things will push back past the deadline.' He added that the final decision rests with Trump.
Bessent, meanwhile, denied that August 1 represents a new deadline. 'It's not a new deadline. We are saying, this is when it's happening. If you want to speed things up, have at it. If you want to go back to the old rate, that's your choice,' he told CNN.
In a conversation aboard Air Force One, Trump reiterated his preference for written notices over complex negotiations.
'This is what you have to pay, if you want to do business [with] the United States,' he said, defending the efficiency of the letter approach over drawn-out bilateral negotiations.
While several deals are reportedly imminent, many countries remain sceptical of Washington's volatile approach.
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Japan's Prime Minister Shigeru Ishiba, for example, stated, 'I won't easily compromise' in trade talks with the US, while Brics leaders continue to denounce unilateral tariff escalations as economically harmful and legally questionable.
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With inputs from agencies