President Donald Trump has set a firm August 1 deadline for imposing steep new tariffs—some as high as 50%—on dozens of U.S. trading partners, unless new trade agreements are reached. Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent have emphasized that there will be no extensions or grace periods, increasing pressure on countries like the European Union and Japan to open their markets to U.S. exports. The administration claims these tariffs will boost the U.S. economy and give the U.S. leverage in negotiations, but there is widespread uncertainty about the impact on global trade and consumer prices. While a deal with Japan has been announced, talks with the EU and other partners remain tense and unresolved. The outcome of these negotiations could reshape global trade relationships and have significant economic consequences.
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