Trump tariffs live updates: Trump threatens to send Japan new tariff rate; EU open to universal tariffs

Key Points

  • July 9 Deadline: President Trump's self-imposed deadline for tariff negotiations is approaching, with mixed signals from the administration about potential extensions, as Trump suggests he may not need to extend it while Treasury Secretary Scott Bessent warns of reverting to steep "Liberation Day" tariffs for non-compliant countries.**
  • EU Trade Talks: The European Union is prepared to accept a 10% universal tariff on exports to the US but seeks exemptions for key sectors like pharmaceuticals, alcohol, semiconductors, and aircraft, while also pushing for lower duties on autos, steel, and aluminum.**
  • Japan Tariff Threat: Trump has threatened Japan with new tariff rates via a letter, citing their refusal to accept US rice exports, amidst ongoing trade talks and a potential return to a 24% tariff rate if no deal is reached by July 9.**
  • Canada's Concession: Canada scrapped its digital services tax on US tech companies like Apple, Amazon, and Alphabet just before implementation, leading to resumed trade talks with the US after Trump's threat to halt negotiations.**
  • Price Impact: Tariffs are beginning to affect consumers, with prices of China-made goods on Amazon rising faster than US inflation, indicating the broader economic impact of Trump's tariff policies.**

Summary

As President Trump's self-imposed July 9 deadline for tariff negotiations nears, global trade tensions are escalating. Trump has expressed confidence in meeting the deadline without extension, while Treasury Secretary Scott Bessent warns of reverting to high "Liberation Day" tariffs for uncooperative nations. The European Union is open to a 10% universal tariff on exports to the US but seeks exemptions for key industries like pharmaceuticals and semiconductors, alongside reduced duties on autos and steel. Meanwhile, Trump has threatened Japan with new tariffs over their refusal to accept US rice, and Canada averted a crisis by scrapping a digital services tax on US tech giants, resuming trade talks. The economic impact is already visible, with prices of China-made goods on Amazon outpacing US inflation. With only one signed deal with the UK so far, countries are racing to finalize agreements before the deadline, amid uncertainty over potential extensions and the broader implications of Trump's tariff policies on global trade and consumer costs.

yahoo
July 1, 2025
Stocks
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