Overview

• President Donald Trump has ruled out any extension of the August 1 tariff cutoff, with Commerce Secretary Howard Lutnick affirming that duties will snap back as scheduled.
• If no agreements are in place by Friday, baseline reciprocal rates will revert from 10% up to as high as 50%, incentivizing partners to negotiate.
• Treasury Secretary Scott Bessent urged markets and trade partners not to panic over initial snapbacks, noting countries can still finalize deals afterward.
• Recent pacts with the European Union and Japan have boosted U.S. leverage by capping tariffs at 15%, strengthening Washington’s negotiating position.
• U.S. negotiators, including Bessent and USTR Jamieson Greer, have held three rounds of talks with China since a June truce imposed a 30% reciprocal tariff.