In four days, President Trump has set a deadline for himself to make trade accords with dozens of nations, but the White House has nothing to show for it. Even while Trump boasted about quickly securing hundreds of trade accords, his administration has only claimed three, and the facts are sketchy at best.
In May, the initial full month following the implementation of his tariffs, U.S. exports experienced a decline. The stock market hits new highs and the employment report is better than predicted, but consumers and corporations alike are still in a depressing mood.
To Trump, it’s all irrelevant.
Last week, when asked about the impending deadline for nations to negotiate agreements or face punitive new tariffs, the Trump declared, “We can do whatever we want.” The deadline is Tuesday. We have the option to lengthen it or shorten it. I think it could be condensed.
Over the last three months, world leaders have been hesitant to commit to anything in an effort to avert tariffs ranging from 20 to 50 percent, which would have effectively constituted a trade embargo in many instances. Additionally, it brings attention to a significant conflict inside Trump’s second administration: the president’s enduring fondness for imposing tariffs is at odds with his image as a skilled negotiator.
Many in Congress, the international community, and even among White House friends have taken a pessimistic view of the July deadline, wondering if an agreement with Trump administration will accomplish anything considering the president’s fondness for utilizing tariffs as a bargaining chip.
According to an anonymous White House source involved with the trade discussions, “Trump knows the most interesting part of his presidency is the tariff conversation.” This source was allowed anonymity in order to discuss the sensitive negotiations. I don’t think he’s going to give it up that easy. None of it is real. No set due date. Here we are, at this self-imposed marker in this theatrical spectacle.
For example, in his Wednesday announcement of a preliminary trade agreement with Vietnam, Trump used Truth Social to announce higher tariff rates for the nation. However, the accord is still in the early stages, as indicated by the draft text of the statement that the United States and Vietnam are planning to make.
Ever since he announced his intentions to impose historically high tariffs in a Rose Garden ceremony on April 2, which the White House celebrated as “Liberation Day,” Trump has been trying to juggle two trade agendas.
It would appear that tariffs are an integral element of his administration’s policy, as they have kept a 10% baseline levy on almost all trade partners. Under the guise of reshoring companies, safeguarding national security, and generating new money, he also increased tariffs on specific industries, such as imported automobiles and auto components, and planned to do the same for other sectors.
Meanwhile, without the power to drastically reduce the new barriers, his trio of trade negotiators—Scott Bessent of the Treasury, Howard Lutnick of the Commerce Department, and Jamieson Greer of the United States Trade Representative—have begun a mad dash to secure numerous deals with foreign governments.
Because of this, the procedure has become quite complicated, and there seems to be no end in sight. Many nations have dispatched delegates to the United States in an effort to reach an agreement, but so far, not all of them have been successful. Those fortunate enough to meet with Trump administration officials in person have reported feeling either bewildered by American demands or having their country publicly scolded by Trump thereafter.
There is still no clear consensus among Trump’s senior advisors and the White House as to how critical the deadline is, even though it is coming up on Tuesday. Despite Trump’s denial, Bessent and Kevin Hassett, director of the National Economic Council, were circulating the idea that Trump will likely extend the deadline on Capitol Hill and in television appearances. Telling Fox Business’ Maria Bartiromo last week, “I think we could have trade wrapped up by Labor Day” was Bessent’s statement.
Trump is dead serious about the tariff deadline and about striking agreements, according to White House advisers. While they do recognize that current trade agreements may not prevent future taxes on countries for reasons unrelated to trade, such as the fentanyl tariffs imposed on China, Mexico, and Canada, they also note that this does not bar the president from imposing tariffs on countries in the future.
Just because he’s the president of America doesn’t mean he treats this like a game. Everything is on the line, and he knows it. The president is not haphazardly attempting to cause economic conflict for the sake of TV ratings, according to one anonymous White House insider who shared the president’s thoughts. “There are well-defined objectives, and he knows what he’s doing.”
Ryosei Akazawa, Japan’s commerce minister, visited the United States almost weekly in June. However, following his recent trip, Trump expressed his disbelief in Japan’s willingness to negotiate over rice in a social media post. He threatened to notify Japan in writing of the tariffs they would be subject to when exporting to the United States, which could reach 35%—much higher than the 24% rate the country experienced during the “reciprocal” tariffs that were temporarily halted in April.
Trump has brought up the idea of sending such letters to foreign nations on many occasions recently, implying that he is sick and tired of trade talks and would rather impose tariffs on American trading partners while telling them they are permitted the “honor” of doing business in the United States.
During his press conference on Thursday afternoon, Trump hinted that he would begin notifying countries of “what they’re going to pay to do business with the U.S.” in as many as ten letters each day beginning “probably” Friday.
This proposal seems to be reminiscent of his earlier attempt to implement reciprocal tariffs, which was halted due to investor and company fear, which caused the stock market and interest rates to plummet.
“Eyes are wide open about these deals, and that the deals themselves do not necessarily mean you’re going to be shielded from tariffs,” warned Wendy Cutler, a former negotiator with the U.S. Trade Representative’s Office during the Obama administration and current VP of the nonprofit Asia Society Policy Institute. She added that she expects a flurry of deals in the coming days.
“If you did something to annoy Trump, he might threaten to impose another tariff,” Cutler added.
The White House has previously stated that it is in the final stages of negotiating an agreement with both Vietnam and India. The European Union, whom Trump had previously said was being uncooperative in discussions, now seems prepared to make substantial concessions in exchange for a trade agreement, and a slew of trade officials have converged on Washington to begin negotiations.
Trump will likely continue to threaten unilateral tariffs right up until the deadline, according to Mark DiPlacido, who was an official in Trump’s first term’s U.S. Trade Representative’s office. However, he did say that Trump’s ultimate goal is to strike agreements.
The former presidential advisor now serves as a policy advisor at the economic populist think tank American Compass. “I think the president hopes to reach a deal and get the concessions that he wants to see from these countries — and is willing to walk away or suspend negotiations to get those concessions,” he said. But usually what he wants is a real deal when it’s all said and done. The 90-day extension wouldn’t have been necessary if the purpose had been purely punitive.
However, it is highly improbable that the arrangements that have been announced would be formal bilateral trade agreements that require congressional ratification. The current procedure, on the other hand, appears to be mimicking the administration’s initial trade framework it unveiled in May, which involved the UK. In lieu of negotiating the finer points, the parties reached an agreement on some parameters pertaining to the acquisition of products and the limitation of tariff rates. They also agreed to continue discussing, at a later date, the more challenging matters, such as the digital service taxes imposed by the United Kingdom and agricultural obstacles.
“Negotiations are ongoing, even though the contract is finalized. Framework agreements are what they are. Everett Eissenstat, a trade advisor in Trump’s first term, stated that they are not final.
When it comes to more reciprocity and higher baseline tariffs, “the bigger picture is that he’s moving the ball in the direction he wants it to go,” Eissenstat remarked. “It’s going to be a little rough, but he’s getting there.”
“You have completed the task. “Take them,” said the White House insider, speaking to the recommendations they would make to the president. The fact that he enjoys the game so much probably means he doesn’t want to take them.