Are tariff rates going up? What to know about Trump's July 9 deadline
U.S. consumers might have a few more weeks before feeling the full force of President Donald Trump's tariffs, even as a July 9 deadline looms.
Trump in April announced a baseline 10% tariff, as well as targeted tariffs on dozens of countries. After stocks tanked and the bond market rebelled, Trump reversed course and said he would pause the sweeping tariffs for 90 days, giving countries until July 9 to negotiate rates. The flat 10% rate remained in effect.
But that goalpost seems to have been pushed back. Commerce Secretary Howard Lutnick told reporters on July 6 that Trump is 'setting the rates and the deals right now," with new tariff rates set to kick in on Aug. 1.
"I think we'll have most countries done by July 9. Either a letter or a deal," Trump said on July 6. By July 7, Trump posted letters to the leaders of various countries, like Japan and South Korea, announcing tariffs and warning of further increases if they raise tariffs on the United States.
Here's where the country's trade deals stand so far.
Where do tariffs stand today?
After announcing a 90-day pause on the April 2 tariffs, the Trump administration said it would use that time to launch dozens of deals with trade partners.
"We're going to run 90 deals in 90 days. It's possible," White House trade adviser Peter Navarro said in April.
So far, the Trump administration has announced two trade deals:
The U.S. and China in May also agreed to lower tariff rates during a 90-day pause.
The administration has hinted at more deals on the horizon amid ongoing discussions.
The EU's top trade negotiator, Maros Sefcovic, recently met with officials in Washington, and the Japanese government said its tariff negotiator held 'in-depth exchanges' with Lutnick over the phone in early July, according to Reuters. Talks with South Korea are also set to continue the week of July 7, according to Reuters, with President Lee Jae Myung's national security adviser visiting Washington.
Treasury Secretary Scott Bessent on July 7 told CNBC that the administration would make 'several' more trade announcements within the next 48 hours.
'I think what President Trump is concerned about is the quality of the deals, not the quantity,' he said.
Trump threatens countries aligned with BRICS
On July 6, Trump said countries that align with BRICS policies could face an additional 10% tariff. The group of nations includes Brazil, Russia, India, China, South Africa, Iran, Ethiopia, Egypt, Indonesia and the United Arab Emirates.
Trump's threat comes shortly after the countries issued a joint statement warning that tariffs could hurt global trade. The countries also condemned military strikes on Iran.
What does this mean for Americans?
Because importing U.S. businesses will be paying Trump's tariffs, economists have warned that U.S. consumers will likely see higher prices as companies pass along those higher rates to customers.
Federal Reserve Chair Jerome Powell last month said he expects to see more price hikes this summer after tariffs have more time to work through the distribution chain.
"The cost of the tariff has to be paid, and some of it will fall on the end consumer," he said. "That's what businesses say. ... So we know that's coming."
Trade war escalates again: Trump says 25% tariffs coming for Japan and South Korea
Trump sends tariff letters to countries
During a July 6 appearance on CNN's 'State of the Union,' Bessent said the U.S. would send letters threatening to hike tariffs if trading partners fail to reach an agreement, with roughly 100 letters sent to smaller countries that don't trade much with the U.S.
The letters are "saying that if you don't move things along, then on Aug. 1, you will boomerang back to your April 2 tariff level," Bessent said.
Here are where the April 2 tariffs stood for some of the country's largest trading partners:
Letters started going out on July 7. That afternoon, Trump shared letters threatening 25% tariffs on goods from Japan and South Korea starting Aug. 1 if the countries do not agree to a trade deal.
According to the Commerce Department, 4.9% of the U.S.'s machinery and mechanical appliance imports originated from South Korea as of 2022, as well as 8.3% of its transportation equipment and 4.9% of its base metals, iron, steel and tools. U.S. imports from South Korea totaled $115.4 billion, up 21.3% from the previous year.
As for Japan, the country accounted for 6.2% of the U.S.'s machinery and mechanical imports in 2022. Nearly 4% of total U.S. exports were sent to Japan that year, while 4.6% of total U.S. imports were from Japan.
Trump revealed new tariff rates on goods from an additional five countries later in the day, including:
White House press secretary Karoline Leavitt said there will be dozens of additional letters sent in the coming days.
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