President Donald Trump announced on Wednesday that within the next week or two, he will send letters to trading partners to set unilateral tariff rates. He said, “At a certain point, we’re just going to send letters out… this is the deal, you can take it or leave it,” speaking at the Kennedy Center in Washington.
Trump had earlier introduced steep tariffs that unsettled markets but then paused the most severe duties. This pause expires on July 9. However, his recent remarks have created uncertainty about what will happen after the deadline.
Treasury Secretary Scott Bessent told Congress on Wednesday that the tariff pause is “highly likely” to be extended for countries negotiating “in good faith.”
He said there are 18 key trading partners with whom the administration is working toward deals, and those engaged in honest negotiations will likely see the deadline extended.
On Tuesday, the U.S. and China agreed on a framework and implementation plan to reduce trade tensions. Trump called the deal “done,” pending approval by him and Chinese President Xi Jinping. The agreement addresses issues like rare earth minerals and magnets.
However, reports indicate China will only ease restrictions on rare earth exports for six months. Trump also said the U.S. will allow Chinese students to attend American colleges, resolving a recent sticking point.
Trump stated the U.S. will impose a total 55% tariff on Chinese goods. According to a White House official, this figure is a sum of existing tariffs, not new ones. Meanwhile, a federal appeals court ruled on Tuesday that Trump’s tariffs can remain temporarily in effect while legal challenges continue.
This reversed a previous block by the U.S. Court of International Trade, which had called the tariff method “unlawful”.
Industry leaders warn that despite the trade deal, the damage to supply chains and the economy will persist. The 55% tariff is seen as a minimum rate U.S. importers pay, and many businesses struggle to absorb the cost, which ultimately falls on consumers.
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