{"id":239810,"date":"2025-07-05T10:02:10","date_gmt":"2025-07-05T10:02:10","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/239810\/"},"modified":"2025-07-05T10:02:10","modified_gmt":"2025-07-05T10:02:10","slug":"here-we-go-again-latest-trump-tariff-deadline-looms-amid-inflation-concerns-trump-tariffs","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/239810\/","title":{"rendered":"Here we go again: latest Trump tariff deadline looms amid inflation concerns | Trump tariffs"},"content":{"rendered":"

When Donald Trump<\/a> unveiled his \u201cliberation day\u201d tariffs in the spring, only to pull the plug days later as panic tore through global markets, his officials scrambled to present the climbdown as temporary.<\/p>\n

Three months of frenetic talks would enable the Trump administration to strike dozens of trade agreements with countries across the world, they claimed. \u201cWe\u2019re going to run,\u201d the White House trade adviser Peter Navarro told Fox Business Network. \u201cNinety deals in 90 days is possible.\u201d<\/p>\n

The 90-day pause Trump ordered on his steep tariffs is almost up, and 90 deals have not materialized. The US is again on the brink of launching a trade assault against dozens of countries, with rates including 27% on Kazakhstan, 47% on Madagascar and 36% on Thailand.<\/p>\n

\u201cI\u2019m not thinking about the pause,\u201d the president claimed during a briefing with reporters earlier this week, when asked about Wednesday\u2019s deadline. \u201cI\u2019ll be writing letters to a lot of countries. And I think you\u2019re just starting to understand the process.\u201d<\/p>\n

Business leaders, lobbyists, economists and investors might disagree. Even officials in Trump\u2019s own administration have at times struggled to keep up. Another cliff edge has reared into view, forcing them to return to a familiar question: will he actually go through with this?<\/p>\n

\u201cI would suspect he\u2019s serious,\u201d said Marc Busch, professor of international business diplomacy at Georgetown University. \u201cI think he\u2019s going to give a pass to the countries negotiating in good faith. But as of 9 July, a lot of the news will be big tariffs that the US hasn\u2019t seen since the 1930s are in effect.\u201d<\/p>\n

A handful of agreements have emerged, cooling some tensions. A partial deal with the UK was first to emerge<\/a>, before a delicate truce<\/a> with China, and a pact with Vietnam<\/a>. Officials are also said to be closing in<\/a> on a \u201cframework\u201d arrangement with the EU.<\/p>\n

But these breakthroughs have been significantly narrower than conventional free trade agreements, which can take years to hammer out. \u201cThese aren\u2019t real trade deals. These are cessations of hostility,\u201d said Busch. \u201cThese are purchasing agreements that may or may not appease Trump for maybe a little while, thrown in with some aspirational stuff.\u201d<\/p>\n

Even if Trump extends the 90-day pause next week, or strikes myriad deals at breakneck pace, current tariff levels are still much higher than they were before his return to office. The effects of this are still filtering through to prices for US consumers.<\/p>\n

\u201cThe US economy<\/a> is definitely, I would say, breaking more to the positive than would have been the narrative, or the expectation, kind of right after liberation day,\u201d said John Waldron, president of Goldman Sachs. \u201cThere\u2019s still an expectation that we\u2019re going to see more inflation over the course of the summer.\u201d<\/p>\n

Mid-sized businesses in the US face an estimated $82.3bn in additional costs if the US maintains a 10% universal rate on all imports, as well as higher rates of 55% on China and 25% on Mexico and Canada, according to analysis<\/a> by the JPMorganChase Institute.<\/p>\n

Such firms \u201coften play a crucial role in regional economies and as part of larger supply chains\u201d, said analysts at the institute. \u201cIf they struggle, it may cause ripple effects for other businesses and their communities.\u201d<\/p>\n

If the \u201cliberation day\u201d tariffs are reimposed after the pause, costs would rise significantly. But even if they are not, the duties Trump has already introduced \u2013 and remain in force \u2013 are leaving companies with a hefty bill.<\/p>\n

The administration\u2019s playbook, of hiking tariffs on a country dramatically and then cutting them back as a result of an agreement, is \u201clike a retailer that one day increases prices by 100% and another day announces a 30% sale\u201d, said Busch. \u201cIt\u2019s quite extraordinary that we\u2019re still debating this issue,\u201d he added. \u201cAmerican businesses are already eating and passing on parts of these tariffs to consumers.\u201d<\/p>\n

No senior federal official has been more vocal about this reality than Jerome Powell, chair of the Federal Reserve, who \u2013 despite Trump\u2019s public demands and attacks \u2013 has kept US interest rates on hold while waiting to see how the administration\u2019s trade strategy pans out.<\/p>\n

\u201cSomeone has to pay for the tariffs,\u201d Powell said at a recent press conference, noting how the cost filters through a supply chain, from the initial manufacturer through to the customer buying a product. \u201cAll through that chain, people will be trying not to be the ones who pick up the cost.<\/p>\n

\u201cBut ultimately, the cost of the tariff has to be paid and some of it will fall on the end consumer. We know that. That\u2019s what businesses say. That\u2019s what the data says from past evidence. So we know that\u2019s coming.\u201d<\/p>\n

Trump does not see it this way, <\/strong>insisting that tariffs are taxes on other countries, rather than US businesses and consumers.<\/p>\n

Whatever happens over the next few days, those attempting to take a longer-term view believe the main actions he has taken in recent months \u2013 like imposing blanket 10% tariffs \u2013 could remain in place for many years to come.<\/p>\n

\u201cWe think it\u2019s likely that high and broad-based tariffs are here to stay because, of all the purported goals of trade policy, they\u2019re proving most successful at raising revenue,\u201d said Michael Pearce, deputy chief US economist at Oxford Economics<\/a>. \u201cGiven the fiscal challenges that lie ahead, those revenues will be hard for future administrations to replace.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"When Donald Trump unveiled his \u201cliberation day\u201d tariffs in the spring, only to pull the plug days later…\n","protected":false},"author":2,"featured_media":239811,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,1700,16,15],"class_list":{"0":"post-239810","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114800056385275623","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/239810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=239810"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/239810\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/239811"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=239810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=239810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=239810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}