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Home World News Europe

US demands trade deals or threatens tariffs by August 1 – DW – 07/07/2025

July 6, 2025
in Europe
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US demands trade deals or threatens tariffs by August 1 – DW – 07/07/2025
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The United States is warning its trading partners to negotiate new deals or face higher import taxes by August 1, the latest deadline in President Donald Trump’s implementation of “reciprocal” tariffs.

Trump says letters will be sent out on Monday, alerting countries that higher duties are imminent unless agreements are reached.

“President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along, then on August 1 you will boomerang back to your April 2 tariff level. So I think we’re going to see a lot of deals very quickly,” US Treasury Secretary Scott Bessent told CNN’s “State of the Union” on Sunday.

In April, Trump announced a 90-day pause, until July 9, on tariffs ranging from 10% to 50% on dozens of countries, including most major trading partners.

Bessent insisted the August target is “not a new deadline” for negotiations.

“We are saying this is when it’s happening. If you want to speed things up, have at it. If you want to go back to the old rate, that’s your choice,” Bessent said.

EU-US trade talks ongoing

The European Union (EU) is among those at risk. Without a deal, tariffs on EU goods could soar to 50%, affecting everything from French cheese to German electronics.

EU and US negotiators talked through the weekend in an effort to reach a new agreement.

Bessent said the administration’s strategy is to apply “maximum pressure,” citing the EU as an example. He noted they are “making very good progress” after a slow start.

He added that the administration is “close to several deals.”

“I would expect to see several big announcements over the next couple of days,” he added.

US, EU agree to postpone tariff deal deadline

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Deals have already been reached with the United Kingdom and Vietnam.

The EU says it hopes to reach a deal, but is prepared to retaliate with tariffs on US exports.

The value of EU-US trade in goods and services amounted to €1.7 trillion ($2 trillion) in 2024, or an average of €4.6 billion a day, according to EU statistics agency Eurostat.

Edited by: Srinivas Mazumdaru



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