WSJ: Trump postponed imposing reciprocal tariffs at the request of the Treasury Secretary

WSJ: Trump postponed imposing reciprocal tariffs at the request of the Treasury Secretary

President Donald Trump has postponed the imposition of reciprocal tariffs, extending the deadline from July 9 to August 1, according to an executive order issued on Tuesday, July 8. This decision comes as the administration seeks to further negotiate trade deals with various countries. The new deadline provides an additional three-and-a-half weeks for countries to reach agreements with the United States.

The initial deadline on July 9 was set following Trump's April 2 announcement, where he threatened to impose tariffs on numerous trading partners. The new delay is a result of the administration's efforts to secure more favorable trade terms and reduce the risk of a trade war. The executive order also includes adjustments to the reciprocal tariff rates for several countries, with some rates being lowered and others increased [2].

Notably, Southeast Asian countries such as Cambodia, Laos, and Myanmar have seen their tariff rates reduced, while Japan and Malaysia have seen slight increases. However, Vietnam, a key trade partner, remains subject to a 20% tariff on goods and a 40% tariff on transshipped products. The White House has indicated that more countries will receive letters outlining their tariff rates in the coming days and weeks [2].

The delay also includes a warning that tariffs may be modified depending on the bilateral relations between the United States and the affected countries. This flexibility is intended to encourage more trade negotiations and potentially reduce the number of countries imposing tariffs on American goods [2].

Investors and financial professionals are closely monitoring the situation, as the new tariff policy could significantly impact global trade dynamics. The uncertainty surrounding the tariff deadlines and rates may lead to fluctuations in stock markets and commodity prices. The administration's approach to tariffs has been characterized by frequent changes, making it challenging for businesses to plan and adapt to the evolving trade environment [1, 2].

The situation with China, one of the Trump administration's primary trade partners, remains separate from the reciprocal tariffs. The current tariff structure on Chinese imports is expected to remain unchanged, with most products subject to a 55% total rate. This clarity provides a roadmap for businesses sourcing from China, although the situation for other countries may change as the administration continues to negotiate trade agreements [2].

In conclusion, the postponement of reciprocal tariffs is part of the administration's ongoing effort to secure favorable trade terms and reduce the risk of a trade war. The extended deadline provides additional time for negotiations, but the future of tariffs remains uncertain. Investors and financial professionals should stay informed about the evolving trade policy and its potential impacts on global markets.

References:
[1] https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-says-he-wont-extend-august-1-deadline-after-letters-to-japan-south-korea-others-200619781.html
[2] https://members.asicentral.com/news/industry-news/july-2025/trump-issues-executive-order-delaying-reciprocal-tariffs-to-august-1/