Trump Postpones Tariffs Amid Global Trade Tensions

Wed Jul 09 2025 15:54:06 GMT+0300 (Eastern European Summer Time)
Trump Postpones Tariffs Amid Global Trade Tensions

The Trump administration's decision to delay tariffs raises questions about America's trade strategy.


As the Trump administration extends the deadline for imposing tariffs, concerns are mounting over trade negotiations with major partners.


Donald Trump’s administration, which had boldly proclaimed plans for "90 deals in 90 days," has now opted to postpone the implementation of "reciprocal" tariffs until at least 1 August. Initial hopes were set for a decisive cut-off by 9 July, yet the reality appears to be that fewer than nine agreements will be finalized by that date. The administration's strategy, which relies heavily on the 18 nations contributing to 95% of the American trade deficit, is met with a growing sense of skepticism.

Recent communications from the US to its trading partners echo earlier strategies seen during the "Liberation Day" announcement while maintaining tariffs that were outlined in early April. The administration’s approach, which utilizes trade deficits as a primary gauge for "trade cheating," appears to lack the cohesive execution that was anticipated.

Financial markets currently reflect a sense of complacency regarding the tariff delays, demonstrating a belief in the theory dubbed TACO – Trump Always Chickens Out. However, there is concern that this drawn-out negotiation strategy might provoke further conflicts. Critics argue that these recent letters from the White House serve as an acknowledgment of the administration's failure to conclude substantive agreements, as other nations adopt a similarly tough stance.

Countries like Japan and South Korea have expressed discontent over US policies, and reports indicate that Japan is contemplating leveraging its substantial holdings of US government debt as a negotiating tool. The international perception is that the US faces penalties in markets whenever trade tensions heighten, particularly as domestic retailers warn of rising prices and shortages.

Notably, the global economic landscape is shifting, as the value of the dollar has decreased by 10% this year amid trade uncertainties. Despite Treasury Secretary Scott Bessent's assurances that a stronger dollar would cushion inflation, recent data suggests otherwise. American imports from China have decreased by nearly 10%, while Chinese exports to different global regions, including a notable increase in shipments to the UK and Africa, demonstrate a rebounding trade network outside of the US.

As these tariffs generate revenue for the US Treasury—with record earnings reported in May—the implications of a more isolated American economy have started to materialize. With new trade accords forming between the UK and India and the EU and Canada, the effective tariff imposed by the US now stands at approximately 15%, a significant increase from historical rates of 2% to 4%. Though markets remain stable for the moment, analysts caution that this environment could rapidly shift.

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