Trump sets August 1 deadline for trade deals or face steep tariffs
- Countries were warned to negotiate trade deals before August 1 to avoid significant tariffs.
- Public opinion is skeptical about the administration's focus on tariffs over trade fairness.
- The enforcement of higher tariffs is expected to influence economic stability and consumer prices.
In the United States, Commerce Secretary Howard Lutnick expressed optimism about the Trump administration's upcoming trade negotiations. On a Sunday show, he declared that significant trade agreements with key partners would be reached within the next two weeks, ahead of an August 1 deadline. This urgency stems from letters sent by President Donald Trump to 25 nations, warning them of steep tariffs if deals are not finalized. Among the impacted countries are Canada, Mexico, and the European Union, whose leaders have already indicated they may retaliate with their own tariffs if no agreements are reached. Meanwhile, with only a limited number of trade deals concluded so far, public sentiment appears skeptical, with polling suggesting more than half of Americans believe the administration’s focus is too heavily weighted towards tariffs rather than fair trade. Notably, Lutnick promised that the forthcoming deals would be beneficial for the American public, arguing that Trump's hardline approach has urged countries to negotiate more seriously to evade penalties. However, there are signs of unrest in financial markets due to these tariff threats, leading economists to warn about the potential economic repercussions and rising consumer prices this could cause. The looming August 1 deadline represents a crucial moment, as the announced tariff rates suggest significant hikes on imports from some of the U.S.'s largest trading partners, raising concerns about trade relations and overall economic stability.