US President Donald Trump on Wednesday said he’s open to extending the July 8 deadline for trade talks before higher tariffs kick in, but added that an extension probably won’t be “a necessity.“Speaking to reporters ahead of a performance at the Kennedy Center Trump said, “We’re rocking in terms of deals. We’re dealing with quite a few countries and they all want to make a deal with us.”Despite being open to some flexibility, Trump stressed that he didn’t see an extension would be “a necessity.” “We’re dealing with Japan. We’re dealing with South Korea. We’re dealing with a lot of them. We’re dealing with about 15 countries,” the US President told the reporters.Trump further continued that the United States will soon send letters outlining final trade deal terms to dozens of countries. “But as you know, we have about 150-plus, and you can’t [make a deal with all of them]. So we’re going to be sending letters out in about a week and a half, two weeks, to countries and telling them what the deal is,” he said.“At a certain point, we’re just going to send letters out … saying, ‘This is the deal. You can take it, or you can leave it,'” Trump said. “So at a certain point we’ll do that. We’re not quite ready,” he added.
Currently, only one deal, with the United Kingdom has been finalised, while about 17 others are still under negotiation. A 90-day pause on Trump’s sweeping “reciprocal” tariffs is set to expire on July 8, putting pressure on countries to reach agreements.US Treasury Secretary Scott Bessent, speaking to lawmakers, said the deadline could be extended for some nations. Bessent explained to the House Ways and Means Committee that, “It is highly likely that those countries – or trading blocs as is the case with the EU – who are negotiating in good faith, we will roll the date forward to continue the good-faith negotiations.”“If someone is not negotiating, then we will not.” Bessent added.Bessent’s comments marked the first time a Trump administration official suggested there could be flexibility on the tariff pause deadline. Trump echoed this sentiment, saying, “They do want to negotiate.” Earlier on Tuesday (local time), Trump has confirmed that a new trade deal with China is “done,” pending final approval from both him and Chinese President Xi Jinping. Under the agreement, the US will impose a 55% tariff on Chinese imports, while China will apply a 10% tariff on American goods.“We made a great deal with China. We’re very happy with it,” Trump told reporters at the Kennedy Center, further adding that, “We have everything we need, and we’re going to do very well with it. And hopefully they are, too.”Trump revealed that China will supply the US with magnets and rare earth materials as part of the deal. In return, Chinese students will be allowed to continue studying at American universities—a reversal from Trump’s earlier restrictions on their presence at US institutions.
Trump posted on Truth Social, “Our deal with China is done, subject to final approval with president xi and me. full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!). We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!”“Adding to the China readout, President XI and I are going to work closely together to open up China to American Trade. This would be a great WIN for both countries!!!,” Trump said in separate post.The backdrop to these developments is Trump’s abrupt announcement on April 9 of a pause in his aggressive tariff plans, which had shocked global markets a week earlier when he unveiled sweeping “Liberation Day” tariffs on nearly all major trading partners.The move sent the S&P 500 Index tumbling over 12% in just four days, its worst drop since the start of the Covid-19 pandemic. Even US Treasury bonds were hit, with yields spiking and the dollar sinking.Markets only began to stabilise on April 9, when Trump unexpectedly paused the tariff rollout. Optimism returned in May as the administration scaled back aggressive tariff plans, especially against China.
