US President Donald Trump wants all the countries with which he is currently in trade talks to submit their best offers by the end of the day. According to Bloomberg, the Office of the United States Trade Representative sent letters reminding them of the July 8, 2025, deadline when the “reciprocal” tariffs will be imposed if no deals are reached.
It remains unclear which nations were sent letters, but at the time of publication, no best offers have been submitted. This comes despite White House adviser Kevin Hassett saying nearly a week ago that three deals “basically look like they’re done.”
Trade talks intensify under looming tariff deadline
On April 2, Trump announced sweeping reciprocal tariffs on all nations with which the US has a trade deficit, aimed at promoting domestic manufacturing.
However, just a week later, he announced that they would be suspended for 90 days to allow time for trade negotiations that would ease the market turmoil. Indeed, the Organisation for Economic Co-operation and Development has predicted that US growth will shrink to 1.6% this year, from 2.8% in 2024.
A draft of the letter sent to negotiating partners, obtained by Reuters, requests their best offers on tariffs and quotas for US industrial and agricultural products, plans to address non-tariff barriers, and commitments on digital trade and economic security. The draft also reiterates the urgency of deciding trade deals ahead of the self-imposed deadline.
According to the letter, the US will evaluate the responses and, within days, offer “a possible landing zone” that could include a new reciprocal tariff rate. An anonymous recipient said he saw Trump’s words as a way of steering ongoing talks rather than an ultimatum, according to Bloomberg.
The letter also claims that the trade measures will not be sidelined if the Court of International Trade rules against Trump’s use of the emergency economic powers statute to impose the tariffs. Last week, the court ruled that the president had overstepped his authority and that the law does not grant unlimited power to restrict imports.
Although Trump has appealed the decision, allowing the tariffs to remain in place for now.
EU, Japan have not received letters… and it is unclear who has
Interestingly, the EU did not receive the letter, according to Reuters, despite the bloc’s ongoing efforts to negotiate a deal.
Sources told Bloomberg that EU executives would like to strike a mutually beneficial agreement with the US, but were unsure that Trump has the same goals. Japan has also not been sent a copy, according to Reuters.
Other negotiating partners include China, Vietnam, India, and Taiwan. On Monday, Commerce Secretary Howard Lutnick stated that a deal between the US and India is forthcoming in the “not-too-distant future,” while Taiwan continues to “communicate closely” with Washington, according to a report from Reuters yesterday.
Earlier this morning, Trump posted on Truth Social, in all caps, that China’s President Xi Jinping is “very tough and extremely hard to make a deal with,” suggesting that little progress is being made there.
Nevertheless, last month, the two agreed to temporarily slash tariffs on each other’s goods from 125% to 10%, which sent tech stocks soaring. Major tech firms, such as Apple, NVIDIA, and Dell, rely heavily on Chinese components and manufacturing, and high duties would be costly for them.
UK remains the only country to have a deal in place
So far, a trade agreement has only been made with one country: the UK.
While most British exports remain subject to a 10% baseline tariff, key sectors secured exemptions, including steel, aluminium, and jet engines. This is in exchange for the UK lifting restrictions on US beef and ethanol, and will only take effect on July 9, 2025.
Currently, US companies pay 25% tariffs on imports of steel and aluminum from the UK, which were imposed in March. However, yesterday, Trump doubled the rate to 50% for all other countries, which he claims is to boost the domestic steel and aluminium industries.
According to the executive order, the UK’s tariffs could be increased to 50% if Trump finds the country “has not complied with relevant aspects” of their trade deal.
