The White House recently confirmed it will reinstate a previously proposed set of steep tariffs starting August 1, targeting 12 countries that have yet to reach a trade agreement with the United States. This move, originally introduced in early April, was reintroduced by President Trump and Commerce Secretary Lutenick in a joint announcement over the weekend. Formal tariff notices will be sent out on July 7, urging accelerated negotiations.
U.S. Treasury Secretary Bessent emphasized that the 90-day negotiation grace period is coming to an end. If agreements aren’t reached by July 9, the affected countries will face a return to the tariff levels imposed on April 2—or even higher, with duties on some products potentially rising as much as 70%. The announcement signals a clear hardline approach from the U.S. side.
Markets reacted swiftly. U.S. stock index futures dipped during early Monday morning trading in Asia. Dow futures fell roughly 110 points, or about 0.3%, with similar 0.3% declines seen in S&P 500 and Nasdaq 100 futures. Meanwhile, the U.S. dollar index remained steady at 96.987, suggesting investors are taking a wait-and-see approach.
Speaking to reporters, White House economic advisor Milan indicated that if other nations show genuine willingness to negotiate and make concrete concessions, the U.S. may consider extending the deadline. Still, with July 9 approaching fast, it’s clear the Trump administration is using pressure tactics to force progress at the bargaining table.
Analysts believe this renewed tariff push is aimed at speeding up trade talks, but they also warn it could escalate global trade tensions in the short term. Volatility in the financial markets is expected to climb in the coming weeks, and there may be a shift toward defensive assets as investors turn cautious.
The period between now and July 9 will be critical. Whether trade talks break down or manage to find traction could shape global financial market direction. Regardless of the outcome, investors should stay alert and be ready to adapt to fast-changing conditions.
