Trump Raises Stakes in Trade Negotiations, Signals No Extension for July 9 Deadline

U.S. President Donald Trump affirmed on Tuesday that he has no intention of extending the upcoming July 9 deadline for countries to conclude trade negotiations with Washington. He also voiced renewed skepticism about the prospects of reaching an agreement with Japan.

In remarks underscoring escalating tensions, Trump floated the possibility of levying a tariff of 30% or 35%, or whatever the number is that his economic  team determines on Japanese imports—substantially higher than the 24% rate he had previously announced on April 2, which he subsequently put on hold.

This latest threat comes a day after Trump warned of the potential for new tariffs on Japan, while his chief economic adviser indicated the administration aims to finalize trade pacts with key partners following the Independence Day holiday on July 4.

Trump’s renewed brinkmanship with Tokyo arrives just over a week before tariffs are set to increase for a number of U.S. trading partners, Japan included, should no deals be reached. The president cited that Japan refuses to import U.S. rice even when there is a shortage of rice.

For several weeks, Trump has sought to ramp up pressure on negotiating partners ahead of the deadline, pledging to abandon unproductive dialogues and instead notify countries by letter of their impending tariff rates.

In April, Trump had temporarily halted the rollout of country-specific tariffs to enable continued trade negotiations. Since then, his administration has repeatedly promised that a series of new agreements were imminent. However, to date, progress has been limited, with only broad preliminary frameworks unveiled with China and the United Kingdom.

Meanwhile, Kevin Hassett, director of the White House National Economic Council, signaled on Monday that several trade agreements are likely to be announced after the July 4 holiday. He emphasized that the administration’s primary focus has been on securing congressional passage of Trump’s major tax and spending package before Independence Day.