Trump Convenes Cabinet, Countries Scramble Response to New Tariff Deadline

President Donald Trump is set to convene his Cabinet at the White House on Tuesday, as a deadline approaches that could trigger a sharp increase in tariffs on dozens of U.S. trading partners. The meeting, held in front of reporters, comes amid heightened international concern over the administration’s trade policy and follows the passage of a significant tax and immigration bill. The White House has framed the tariff deadline as part of a broader effort to secure new bilateral trade agreements.

What to Know:

• Trump signed an executive order on July 7 delaying the expiration of a 90-day tariff pause. The new deadline is August 1.
• Letters were sent to more than a dozen countries, including Japan, South Korea, Malaysia, and China, outlining new tariff rates ranging from 25% to 40%1.
• After initially imposing tariffs as high as 145% in April, the U.S. reduced duties on Chinese imports to 30% in May. That rate remains in place following a tentative trade agreement.
• A 25% tariff on most imports from Canada and Mexico took effect in March, though goods covered under the U.S.-Mexico-Canada Agreement (USMCA) remain exempt.
• The administration claims that the tariffs are intended to address the U.S. goods trade deficit and foster more balanced trade relationships.
• The original April 2 tariff announcement triggered a sharp market selloff. Stocks rebounded after the pause was announced on April 9, but volatility has continued amid shifting policy signals.

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