President Donald Trump said he would be willing to extend the term of July 8 to complete commercial conversations with the countries before the highest tariffs enter into force, but did not believe that this was necessary.
Trump told reporters before a participation in the Kennedy Center that trade negotiations continued with about 15 countries, including South Korea, Japan and the European Union block.
“We are in full march in terms of agreements,” he said. “We are dealing with enough countries and everyone wants to reach an agreement with us.” He added that he did not believe that an extension of the term was “a necessity.”
Trump said that the United States would send letters in the coming weeks specifying the terms of trade agreements to dozens from other countries, which they could then adopt or reject.
“At one point, we will simply send letters (…) saying: ‘This is the agreement. They can accept or reject it,” Trump said. “So at some point we will do it. We are not ready yet.”
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The United States Secretary of the Treasury, Scott Besent, previously told the legislators that the Trump administration could extend the deadline of the July commercial agreement, or “advance the date” for the countries that negotiate in good faith, in certain cases.
The 90 -day pause in the broader and “reciprocal” tariffs of Trump will end on July 8, with only a commercial agreement agreed with Great Britain and another 17 in various negotiation stages.
“It is very likely that in the case of those countries – or commercial blocks, as is the case of the European Union – that are negotiating in good faith, let’s go on the date to continue the negotiations in good faith,” Besent said before the Committee of Media and Arbitration of the House of Representatives. “If someone is not negotiating, we will not.”
Besent’s comments marked the first time an administration official Trump indicated some flexibility around the expiration date of the pause.
Besent reiterated the possibility of more negotiation time at a second audience before the Senate Assignments Committee on Wednesday, saying that “I think the countries that are negotiating in good faith could advance.”
He said that the European Union had previously taken solid proposals, but now showed “greater confidence”, without giving details. Trump echoed that more optimistic vision on Wednesday, stating: “They do want to negotiate.”
The agreement reached on Tuesday in London with China to descale the bilateral trade war is carried out by a separate route and schedule, with August 10 as the deadline established last month.
President Trump has been the one who makes the final decisions on the tariff and commercial policies of his administration, but Besent’s influence has increased in recent months and many commercial partners have seen the head of the treasure as a moderating voice.
Trump announced the pause on April 9, a week after revealing the “Liberation Day” tariffs against almost all United States business partners, which turned out to be so unexpectedly large and generalized that led to the world financial markets to the edge of panic.
The S&P 500 index collapsed more than 12% in four days, its largest loss streak since the beginning of the Covid-19 pandemic in early 2020. Investors were so nervous that they abandoned the values of the US treasure considered safe refuge, which triggered the yields of the bonds. The dollar collapsed.
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The markets began to recover on April 9 when Trump unexpectedly announced the pause. The recovery continued in early May when the Trump team agreed to reduce three -digit tariffs that had imposed on products from China. These events gave rise to what some on Wall Street have parodied as the “Taco” trade, acronym for Trump Always Chickens out (Trump is always cowed).
“The only time the market has reacted positively is when the administration is going back in key political areas,” said Democratic Representative Don Beyer from Virginia to Besent before pressing it on what to expect when the July period expires.
“As I have repeatedly said, there are 18 important commercial partners. We are working to reach agreements with them,” said Bessent before pointing out his willingness to offer extensions to those who negotiate in good faith.
With Reuters information
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