Trump's letter increases pressure, accelerating tariff negotiations once again.

Trump Sends Letters to Push Trade Talks into Sprint Stage

Amidst a deadlock in tariff negotiations, U.S. President Trump announced over the weekend that he has signed and will send tariff letters to 12 trade partner countries on Monday, aiming to expedite negotiations that have yet to reach an agreement. Previously, the U.S. had signaled multiple times that without an agreement to reduce the trade deficit by July 9, it would revert to the higher tariff levels announced on April 2.

Trump's move is seen as a pressure tactic on other countries to speed up the negotiation process while also providing a final window of negotiation time before the August 1 tariff implementation date.

Bessent Offers "Flexible Window," Denies New Deadline

U.S. Treasury Secretary Scott Bessent stated in interviews with CNN and Fox News on Sunday that for countries that have not signed an agreement by July 9, the U.S. will offer an additional negotiation period of up to three weeks, with tariffs still set to go into effect on August 1.

Bessent clarified that August 1 is not a new deadline but rather the set timeline for tariff implementation. Until then, trade partners can continue to propose amendments or new conditions to seek more favorable tariff arrangements. He emphasized, "If countries wish to return to the previously lower tariff levels, they should act quickly."

Bessent also revealed that the U.S. is engaged in intensive negotiations with 18 major trade partners. Currently, substantial progress has been made in several talks, including those with the EU, despite the high complexity of the discussions. The U.S. continues to exert maximum pressure to reach agreements.

Many Countries Eager to Reach, Some Agreements Near Completion

Recently, the Trump administration has reached preliminary frameworks for some trade agreements with the UK, Vietnam, and China, while more countries are racing against time to find solutions to avoid high tariffs before August 1.

Last Friday, after technical discussions with the U.S. in Washington, EU representatives indicated they are close to reaching a preliminary agreement; Japan's Prime Minister Shigeru Ishiba emphasized that Japan is prepared for various tariff scenarios and will steadfastly protect national interests; Cambodia announced it has reached an agreement on a framework with the U.S., with detailed information to be released soon, while Indonesia's negotiators are advancing agreements covering minerals, energy, defense cooperation, and market access to meet the deadline.

In addition, Thailand is working to avoid tariffs up to 36% by increasing energy purchases and Boeing aircraft orders and expanding imports of U.S. products; South Korea is engaging in negotiations with the U.S. on automobile tariffs, seeking deferral or avoidance of higher tariffs.

Markets Eye Negotiation Progress and Tariff Impact

As Trump pushes the "Great and Beautiful" Act through and U.S. stocks hit new highs, new trade barriers are causing investors to worry about the possible increased complexity in tariff costs for U.S. import companies. The progress of trade negotiations and the potential large-scale agreements before August 1 will impact global supply chains, investor sentiment, and the dollar's trajectory.

Bessent stated in the interview that the next 72 hours are critical, "By clearly indicating to countries that we may return to April's high tariff levels, we will truly push negotiations forward in the coming days and weeks."

Amid rising global trade protectionism, the U.S. continues to accelerate negotiation progress through letters and tariff threats. The outcome of these negotiations and the effects post-tariff implementation will directly affect global market risk sentiment and the cross-border trade landscape.

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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