(Yahoo!Finance) - President Trump's team is no longer aiming for big trade deals with many countries, according to a report in the Financial Times on Tuesday. Instead, they are trying to make smaller, quick agreements before July 9, when Trump plans to bring back his toughest tariffs.
These mini deals would help countries avoid those harsh levies, but partners would still face existing tariffs while talks continue. Talks continue to take place and Trump is still threatening new tariffs on key sectors like cars, steel, and aluminum.
Trump's self-imposed July 9 deadline, when Trump's "pause" on his sweeping April duties expires, fast approaching, with the president and top administration officials providing mixed signals on its malleability while countries race to finalize talks.
Trump said Sunday that he didn't think he'd "need to" extend that deadline, while Treasury Secretary Scott Bessent on Monday warned "recalcitrant" countries that a return to steep "Liberation Day" tariffs looms.
In another sign on Monday that the president was moving forward on his threat to send letters to countries rather than waiting to finalize interim deals, Trump posted on Truth Social that he would be sending Japan a letter with a new tariff rate, citing an unwillingness by the country to accept US rice exports.
Meanwhile, the European Union signaled it was willing to accept a 10% universal tariff on many of its exports but is seeking exemptions for pharmaceuticals, alcohol, semiconductors, and commercial aircraft as part of a trade deal, Bloomberg reported. The EU is also seeking quotas and exemptions to lower duties on autos, steel, and aluminum, the report said.
On the North American front, Canada scrapped its digital services tax on US technology companies, such as Apple (AAPL), Amazon (AMZN), and Alphabet (GOOG, GOOGL) late on Sunday, just hours before it was set to start. The White House said trade talks between the two countries had resumed after Trump threatened to cut off trade talks.
July 1, 2025
