Tariff deadlines delayed until August 1, according to Trump's announcement
As of early July 2025, President Donald Trump has extended and modified the trade tariffs originally announced earlier in his administration, applying new reciprocal tariff rates to various countries, including members of the European Union and other trading partners.
The tariff extension, initially set to expire on July 9, 2025, has been moved to August 1, 2025. This decision comes with new reciprocal tariff rates, which will take effect on that date [1].
President Trump has sent letters to numerous countries outlining updated reciprocal tariff rates. These letters aim to promote more balanced bilateral trade relationships and address the ongoing U.S. goods trade deficit. Some countries will face lower rates than previously announced, while others will see higher rates [1].
The list of countries affected includes Japan, South Korea, South Africa, Malaysia, and others, with tariff rates ranging roughly between 25% and 40% [1].
The European Union, although not explicitly listed among countries receiving new tariff letters, is not immune to the impact of this reciprocal tariff policy and ongoing trade negotiations. The administration’s approach focuses on enforcing tariffs until more balanced trade terms are agreed upon [1][2].
The trade negotiations have pushed deadlines for trade deals to avoid imposing the highest tariffs, but have only secured limited agreements so far, such as frameworks with the UK and Vietnam. These deals have made modest progress, but comprehensive agreements remain elusive [2].
Other tariff developments include tariffs on Chinese-origin goods, adjustments to Section 232 tariffs for certain industries, and investigations into other sectors. These moves affect various trading partners and sectors, reflecting a broad enforcement of trade policies under the Trump administration [3].
The current basic tariff on European imports into the USA is ten percent, with medicines and other pharmaceutical products exempt [4]. The EU sees the trade dispute with the U.S. as being at the "beginning of the final phase," indicating a sense of urgency in resolving the issue [4].
U.S. Secretary of the Treasury Scott Bessent expects many trade deals to be made quickly due to the letters sent to various countries [4]. However, the details of how the EU and the U.S. will conduct trade in the future are still open, leaving room for negotiation and potential compromise.
References: [1] CNBC (2025). Trump extends tariff deadline for countries other than China. [online] Available at: https://www.cnbc.com/2025/07/01/trump-extends-tariff-deadline-for-countries-other-than-china.html [2] Reuters (2025). U.S. trade talks with EU, others in limbo as tariff deadline passes. [online] Available at: https://www.reuters.com/business/us-trade-talks-eu-others-limbo-tariff-deadline-passes-2025-07-09/ [3] Politico (2025). Trump's trade war is far from over. [online] Available at: https://www.politico.eu/article/trump-trade-war-is-far-from-over/ [4] Bloomberg (2025). Trump Sends Letters to Countries on Tariffs, Setting Deadline for Talks. [online] Available at: https://www.bloomberg.com/news/articles/2025-06-30/trump-sends-letters-to-countries-on-tariffs-setting-deadline-for-talks
- The modified employment policy, part of President Trump's extended and amended trade tariffs, has prompted various countries to reassess their business strategies, as new reciprocal tariff rates may impact their commerce and finance sectors.
- Under the new policy-and-legislation, the European Union, along with trading partners like Japan, South Korea, South Africa, Malaysia, and others, faces tariff rates ranging from 25% to 40%, a shift that could influence politics and general news regarding international trade.
- As the trade negotiations with various countries continue, including those in the European Union, businesses must closely monitor policy changes and adjust their plans to comply with the evolving employment policy and ongoing trade regulations.
