Donald Trump could spark more chaos and confusion in global markets after hinting that his latest deadline to impose major tariffs might once again shift on a whim.
On Monday, Trump announced a sweeping new wave of 25 percent tariffs on more than a dozen countries, including key allies and trading partners such as Japan, South Korea, and Thailand. The proposed tariffs range from 25 to 40 percent unless those nations strike a deal with the U.S. by a new deadline of August 1—a delay from his original July 9 deadline.
But speaking during a White House dinner with Israeli Prime Minister Benjamin Netanyahu, Trump—nicknamed “TACO” [Trump Always Chickens Out] by Wall Street traders for his notorious flip-flopping on trade threats—undercut his own new deadline, saying it is “firm, but not 100 percent firm.”
“If they call up and they say, we’d like to do something a different way, we’re going to be open to that,” Trump added.
The White House confirmed Monday that the original 90-day pause on implementing Trump’s most aggressive tariffs, which had been set to expire July 9, has now been extended to August 1.
Trump’s so-called “Liberation Day” tariffs, which economists have long warned could have devastating effects on the U.S. economy, were initially paused to give countries more time to negotiate a new trade deal with the U.S.
In letters sent to the leaders of the 14 targeted countries, Trump threatened to increase the tariffs they now face unless deals are struck by the new deadline.
All 14 countries had been hit with a baseline 10 percent tariff under Trump’s previous trade plans, which differed from the president’s April 2 announcement.
“If you wish to open your heretofore closed trading markets to the United States, eliminate your tariff and non-tariff policies and trade barriers, we will perhaps consider an adjustment to this letter,” Trump wrote in near-identical notes to each leader.
“These tariffs may be modified, upward or downward, depending on our relationship with your country.”
During a press briefing Monday, White House press secretary Karoline Leavitt was asked whether Trump was concerned that world leaders who received the trade letters “won’t take them seriously,” given his track record of backing off from tariff threats and imposed deadlines since “Liberation Day” on April 2.
“They will take the letters seriously because they have taken the president seriously,” Leavitt said. “And that’s why the president’s phone, I can tell you, rings off the hook from world leaders all the time who are begging him to come to a deal.”
Only two nations—the U.K. and Vietnam—agreed to new trade pacts with the U.S. within the original July 9 deadline, way below the 90 deals promised by the Trump administration. A partial deal was also reached with China amid a deepening trade war between the world’s two largest economies.
The White House did not immediately respond to a request for further comment from The Daily Beast.
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