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Trump Extends Liberation Day Tariff Deadlines To August 1

Author Image Admin  -   09:00 am  -   July 08th, 2025


Seal of President of the United States

President Trump has announced that the 90-day pause on “Liberation Day” tariffs, which was set to expire this Wednesday, will be extended through the end of the July. Treasury Secretary Scott Bessent said letters are being sent to notify certain countries that if they do not begin trade negotiations with the U.S. by Friday, August 1, the original Liberation Day tariff rates will be reimposed at that time. On Monday, letters were sent to South Korea and Japan, as well as several other countries, telling them they will face reciprocal tariffs if they fail to reach a trade deal by August 1.

So far, preliminary deals have only been reached between the UK and Vietnam. This morning, the European Union indicated that it may be close to a deal. The administration said Canada will not be receiving a letter, however. Canadian Pime Minister Mark Carney warned that trade countermeasures could be increased if a deal is not reached by July 21, but U.S. Ambassador Pete Hoekstra brushed off those threats last week, citing progress in ongoing talks.

President Trump also warned this weekend that he may impose an additional 10% tariff on any country that aligns with “anti-American” BRICS policies.  The bloc is named after founding members Brazil, Russia, India, China, and South Africa. Other member states include Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates.

Note that the new pause only affects “emergency” tariffs imposed under the International Emergency Economic Powers Act (IEEPA) on April 2. As a reminder, there is a pending case against the IEEPA tariffs before the U.S. Court of Appeals for the Federal Circuit. On June 10, the court issued a stay, meaning the tariffs remain in effect while it reviews a lower court decision that found the tariffs unconstitutional. Oral arguments in this case are slated to begin on July 31, 2025.

The pause does not affect the 50% tariffs on steel and aluminum or the 25% tariff on automobiles and related parts imposed under Section 232 of the Trade Expansion Act of 1962. NEFI is separately monitoring an ongoing Section 232 investigation by the U.S. Commerce Department that may result in new tariffs on medium- and heavy-duty truck and truck parts as well.