The Trump administration is demanding that key trading partners submit their best offers on tariffs, market access, and digital trade by Wednesday, as the White House races to finalize trade agreements before its self-imposed July 8 tariff deadline, according to a draft letter seen by Reuters.
The draft, from the Office of the United States Trade Representative (USTR), reflects growing urgency as President Trump seeks to cement his trade policy legacy. Negotiations began on April 9 after Trump announced a 90-day pause on sweeping new “Liberation Day” tariffs that had roiled global markets earlier this year.
“It is in all parties’ interest to take stock of progress and assess any next steps,” a USTR official told Reuters.
What’s on the Table
The letter asks countries to detail:
- Tariff and quota offers for US agricultural and industrial goods
- Plans to eliminate non-tariff barriers
- Commitments on digital trade and economic security
- Country-specific investment incentives
The US will respond to these proposals with “a possible landing zone,” including reciprocal tariff rates, according to the document.
Negotiations are ongoing with several countries, including the EU, Japan, Vietnam, and India. The only public agreement so far has been with the UK—more of a framework than a finalized deal.
Legal Headwinds
The push for deals comes amid a growing legal battle over Trump’s tariff strategy. Last week, the Court of International Trade ruled that Trump had overstepped his authority under the International Emergency Economic Powers Act (IEEPA). The court questioned the legality of tariffs imposed on nations like Canada, Mexico, and China, accusing them of facilitating fentanyl smuggling.
An appeals court has temporarily paused the ruling, allowing the tariffs to stay in place for now. However, the USTR letter warns partners not to count on a court victory to derail the program:
“Regardless of ongoing litigation… the President intends to continue this tariff program pursuant to other robust legal authorities.”
Market Impact
Markets have responded with volatility. US stocks were flat Monday after Trump surprised markets with a doubling of steel and aluminum tariffs at a Friday rally in Pittsburgh. May was the best month for US equities since November 2023, but only after a steep selloff earlier this year triggered by erratic trade policy announcements.
Meanwhile, investors and trade partners remain cautious as Washington’s tariff stance becomes increasingly entangled in legal and political uncertainty. With just five weeks left before the July 8 cutoff, it’s unclear how many deals can actually be inked — and how enforceable they’ll be if court rulings continue to chip away at the legal basis for Trump’s tariff machine.
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