Trump stated that he will send letters to trade partners in one to two weeks to set unilateral tariff rates, with July 9 being a key date.
Recently, U.S. President Trump revealed to reporters at the Kennedy Center for the Performing Arts in Washington that he intends to send letters to trade partners in the next one to two weeks to set unilateral tariff rates, with July 9 being the deadline for re-imposing higher tariffs on dozens of economies.
Trump clearly stated, 'We will send letters to countries within a week and a half or two weeks, informing them of the agreement details.' He also added, 'At a certain point, we can only send letters. I think you all understand, this is the agreement, you can accept it or not.'
It is noteworthy that Trump stated on May 16 that he would determine the tariff rates for U.S. trade partners in 'the next two to three weeks.' He often sets deadlines of about two weeks for actions, but often fails to meet them. Whether he can fulfill this promise remains to be seen.
In April, Trump announced higher tariffs on dozens of trade partners, but due to a market crash, investors worried that the tariffs would trigger a global economic downturn, leading to a 90-day suspension of the tariffs. On Wednesday, when asked if he would extend the deadline for countries to reach agreements with his government, Trump expressed an open attitude, but he also stated, 'But I don't think we will have the necessity for that.'
Initially, Trump suggested negotiating with each partner, but he has now abandoned that idea and prioritized negotiations with some key economic partners, acknowledging the government's inability to negotiate dozens of separate agreements. Currently, Trump's team is working to reach bilateral agreements with India, Japan, South Korea, and the European Union. Before watching a performance of Les Misérables at the Kennedy Center, Trump told reporters that he is continuing trade negotiations with about 15 trade partners, including South Korea, Japan, and the EU.
U.S. Commerce Secretary Wilbur Ross stated earlier on Wednesday that the EU is likely to be one of the last deals completed by the U.S., expressing disappointment at negotiating with a group of 27 countries. As the U.S. negotiates with countries like India and Japan to lower tariffs, some investors believe Trump's latest remarks are an effort to increase the urgency of negotiations. NAB's senior foreign exchange strategist, Ray Attrill, said, 'Common sense suggests this is another strategy by Trump to increase the urgency of trade negotiations. Trump wants to reach trade agreements, and he wants to do it as quickly as possible.'
Trump's constantly changing tariff policies have disrupted global markets, causing congestion and chaos at major ports, resulting in businesses losing hundreds of billions of dollars in sales and facing higher costs. The World Bank on Tuesday downgraded its forecast for global economic growth in 2025 to 2.3%, stating that increased tariffs and heightened uncertainty pose 'significant adverse factors' for almost all economies.
Additionally, Howard Marks, co-founder of Oak Tree Capital Management, stated that investors should expect continued uncertainty during Trump's presidency, and that the relatively high valuations in the global market require investors to maintain a cautious attitude. Speaking via video link at the Morgan Stanley Australia Summit in Sydney, Marks said of Trump, 'As a continuous negotiator, he values unpredictability, and I think you will encounter this situation for a long time.' At the same time Marks was speaking, Trump indicated his intention to send letters to these trade partners setting unilateral tariffs before the deadline of July 9 for re-imposing higher tariffs on trade partners. Marks also warned, 'Don't think that once the 90-day suspension period is over, everything will be settled. Trump did not explain himself, perhaps this is intentional.' Due to Trump's suspension of the tariffs, global stock markets have rebounded from the volatility triggered by the 'liberation day' in early April. Marks stated that this led to a lot of optimism and 'high' valuations, which means 'we need to be cautious.' Marks described prices approaching or at historical highs as 'disturbing,' and it is difficult to find assets that one would say are 'cheap,' although he also added that the market does not exhibit the 'psychological excess' typical of bubbles. The credit investor also mentioned that the ongoing increase in U.S. debt has brought 'huge uncertainty,' and it is also difficult to predict the timing of any crisis, 'I don't think I will discover this sooner than others.'
