Why did Trump postpone the tariffs to August 1? Bessent still needs negotiation time

Trump will postpone the implementation of reciprocal tariffs to August, with Treasury Secretary Mnuchin suggesting more time for negotiations to secure an agreement with major trading partners.

According to CCTV News, U.S. President Trump has signed an executive order extending the "reciprocal tariff" deferral period, pushing the implementation date from July 9 to August 1. Media reports indicate that advisors, including Treasury Secretary Mnuchin, informed him that negotiations with several trading partners, including the EU and India, are making progress, and extending the deadline will help reach a final agreement.

Although President Trump confirmed that August 1 is the new deadline for the reciprocal tariffs and stated that he would not postpone the final deadline for implementing these tariffs again, the market still interprets this delay as another TACO. Over the past few months, Trump has repeatedly set final deadlines for tariffs in the global trade war but has always backed down at the last moment.

Additionally, Trump announced on Tuesday that he would impose a 50% tariff on copper and tariffs of up to 200% on pharmaceuticals. Analysts believe that this series of actions marks a tactical adjustment in the U.S. government's trade strategy, shifting from immediate tariff implementation to using tariff threats as a core negotiation tool.

More Negotiation Time Needed to Reach Agreement

Reports indicate that Trump was initially inclined to let the tariffs take effect automatically but changed his mind after hearing Mnuchin say that some agreements were close to being reached but needed more time.

Over the weekend before announcing the delay on Monday, Trump consulted with allies via phone and private conversations at his private golf club in Bedminster, New Jersey, weighing whether to set a new deadline of August or simply issue a letter announcing the new tariff rates.

According to reports, Trump expressed dissatisfaction with the slow progress of negotiations with various countries during phone calls with aides and allies, accusing these countries of not offering terms he deemed sufficiently favorable to the U.S.

Despite temporarily postponing the tariffs, the Trump administration has simultaneously adopted a tougher stance. Trump has sent letters to several countries, clearly warning them of the tariff rates they will face on August 1.

Analysts believe that while this temporarily avoids a direct escalation of trade conflicts, it also opens a period of intense negotiations filled with uncertainty.

Trade War Expands to Key Areas

While handling reciprocal tariffs, the Trump administration has also previewed new tariff measures based on other legal authorizations.

Wall Street Journal previously mentioned that Trump stated on Tuesday that, for national security reasons, he would impose a 50% tariff on copper and tariffs of up to 200% on pharmaceuticals.

For pharmaceuticals, companies will have a year and a half to relocate their supply chains before the tariffs take effect.

U.S. Commerce Secretary Ross later confirmed that the announcement regarding copper tariffs would be released on Tuesday, while a report outlining the tariff levels for semiconductors and pharmaceuticals would be published before August 1.

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