As the United States approaches key July deadlines for reintroducing tariffs on imports from most countries, the White House has indicated that President Donald Trump may choose to extend the current suspension.
White House Press Secretary Karoline Leavitt told reporters that the deadlines set for early July are “not critical,” showing the administration’s willingness to remain flexible. She explained that the president could extend the pause if necessary, and retains the authority to determine new tariff rates that he believes would benefit the United States and its workforce.
This stance comes at a time when the U.S. is engaged in complex negotiations with several major trading partners. For example, talks with Japan have intensified in recent weeks, as both sides seek to resolve disputes over tariffs introduced since Trump’s return to office.
Treasury Secretary Scott Bessent recently told Congress that it was “highly likely” the administration would extend the tariff suspension for countries negotiating in “good faith.” This approach has been interpreted by analysts as an attempt to keep diplomatic channels open, rather than risk escalating tensions with abrupt tariff hikes.
Recent developments on the trade front have included the announcement of a new agreement between the U.S. and China. While details remain limited, the deal is said to restore a previous truce and address issues such as the supply of rare earth materials and the status of Chinese students in American universities. President Trump has also suggested that a substantial agreement with India is on the horizon, further indicating the administration’s focus on securing bilateral deals.
The current U.S. tariff regime is notably complex, with overlapping duties that have raised the cost of importing goods from countries like China. The effective tariff rate on Chinese imports now averages over 50%, reflecting a combination of reciprocal tariffs, additional duties, and long-standing levies.
In June, the administration expanded the 50% steel and aluminium tariff to cover a range of household appliances, with the new rates taking effect from late June 2025. These measures are intended to address trade imbalances, combat the flow of illicit substances, and counter what the U.S. sees as unfair trade practices.
Financial markets have responded positively to signals from the White House that the July deadlines could be extended, as investors hope that further negotiations will prevent sudden disruptions to global trade.
However, the uncertainty surrounding U.S. trade policy continues to weigh on the global economic outlook. The World Bank recently revised its forecast for global growth in 2025 downward, citing ongoing trade tensions as a key factor.
Although the Trump administration had initially aimed to secure a large number of trade agreements within the 90-day pause, progress has been slower than anticipated. So far, only framework deals have been reached with China and the United Kingdom, while negotiations with other partners continue.
Officials have hinted that additional agreements may be announced following the passage of a major tax-and-spending bill in Congress, which President Trump hopes to sign by July 4.