Trump Postpones Tariffs to August 1 as Trade Negotiations Gain Momentum
In a strategic move that signals ongoing trade diplomacy, US President Donald Trump has postponed the implementation of country-specific tariffs to August 1, providing a short-term reprieve as high-stakes negotiations continue with several nations, including India.
Originally slated to take effect on July 9, the tariffs now come with a brief extension. The announcement was made by US Commerce Secretary Howard Lutnick on Sunday, who stated that President Trump is currently “setting the rates and the deals right now.”
Speaking to reporters, Trump expressed confidence in finalizing multiple trade deals soon. “I think we’ll have most countries wrapped up by July 9, either through letters or finalized agreements,” he said. Trump added that formal notification letters warning of the impending tariff hikes would start rolling out on Monday, with more expected on Tuesday. Rather than engage in prolonged negotiations, Trump suggested a more direct approach: “This is what you have to pay if you want to do business with the United States.”
Back in April, Trump had announced a base tariff of 10 percent on most US trading partners, with provisions for additional duties that could go as high as 50 percent. So far, the US has secured trade agreements with the United Kingdom and Vietnam, with further deals reportedly in progress.
US Treasury Secretary Scott Bessent noted that the tariff deadline is likely to spur swift action. “President Trump is 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’ll revert to your April 2 tariff level. So I think we’re going to see a lot of deals very quickly,” he told CNN.
India, meanwhile, remains in negotiations. A delegation led by Chief Trade Negotiator Rajesh Agrawal recently returned from Washington without a breakthrough, particularly on sensitive issues like agricultural and dairy trade—key sticking points in discussions with the US.
In a more controversial turn, Trump also announced that an additional 10 percent tariff will be imposed on countries that “align themselves with the anti-American policies of BRICS,” suggesting a broader geopolitical edge to his trade policy.
With the August 1 deadline now set, the coming weeks are expected to be critical for shaping the next phase of America’s trade relations globally.
