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Dow Jones NewsJul 8, 3:57 PM UTC
DJ Trump Says Aug. 1 Trade Deadline Won't Be Extended -- Barrons.com
By Anita Hamilton, Brian Swint and George Glover
Trading partners with the U.S. won't get any more extensions to negotiate new deals after the new Aug. 1 deadline.
"There has been no change to this date, and there will be no change. In other words, all money will be due and payable starting AUGUST 1, 2025 -- No extensions will be granted," President Donald Trump wrote in a Truth Social post on Tuesday.
The White House sent letters yesterday to 14 countries laying out the rates at which imports would be taxed -- ranging from 25% to 40% -- if no other trade agreements are reached. The letters also explained that goods shipped through third countries to avoid tariffs would still face the same levies, and that the rates would go up if countries retaliated.
Trump also issued an executive order Monday night giving all countries the new Aug. 1 deadline to cut a deal before the new rates take effect. Previously, the deadline was July 9. Just a few trade deals have been announced since Trump's "Liberation Day" tariff announcement on April 2, including ones with the United Kingdom and Vietnam. A current deal with China is temporary and expires in August.
China, Japan, and Others Countries Respond
U.S. trading partners are weighing responses after Trump's latest action on tariffs sparked a stock market selloff Monday.
China, which agreed in June on a broad framework for trade but has yet to complete a more permanent agreement, has a slightly later deadline of Aug. 12. A state-sponsored media outlet said Tuesday that the country should oppose any deal that hurts Chinese interests, such as incentives to cut China out of supply chains, according to a report by Reuters.
Japan's Prime Minister Shigeru Ishiba said Tuesday he would continue negotiations with the White House. Trump singled out Japan last week as one country that has been tough to work with and which is unlikely to get a deal by the deadline.
South Africa received a letter Monday saying its products would have a 30% tariff coming into the U.S. starting Aug. 1. The country's President Cyril Ramaphosa said in a statement Tuesday that the levy was "not an accurate representation of available trade data." He also said that under South Africa's interpretation of the data, its average tariff on imported goods stands at 7.6% and 77% of U.S. goods entering South Africa have no duties.
He added that South Africa will continue with its diplomatic efforts toward a "more balance and mutually beneficial" trade relationship with the U.S.
The next big question is what kind of arrangement will be reached with the European Union, which didn't receive a letter. A spokesperson for the EU said Monday that he was hoping for a deal before the deadline.
The return of tariff volatility sent stocks tumbling Monday afternoon. The declines continued Tuesday, but were more muted. Shortly before noon, the Dow Jones Industrial Average was down 0.3%, while the S&P 500 and Nasdaq Composite were both off by 0.1%.
Write to Anita Hamilton at anita.hamilton@barrons.com, Brian Swint at brian.swint@barrons.com and George Glover at george.glover@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
July 08, 2025 11:57 ET (15:57 GMT)
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