Trump Extends Tariff Implementation Date to August 7

Trump Extends Tariff Implementation Date to August 7




President Donald Trump had previously announced that the implementation of his new tariffs on August 1 would bring significant change to the global economy. Administration officials had assured the public that this was a firm, non-negotiable deadline.

However, when Trump signed the executive order on the night of July 31—imposing new tariffs on 68 countries and the European Union—the start date of the import taxes was delayed by seven days to allow updates to the tariff schedule.

This change may be welcomed by countries that have not yet reached agreements with the U.S.—but it has also introduced a new layer of uncertainty for consumers and businesses still trying to understand what is coming and when.

Trump has hinted that the increase in taxes on roughly $3 trillion worth of imported goods will generate new revenue, pave the way for factory jobs, reduce the budget deficit, and compel other nations to deal with the U.S. more respectfully.

However, these sweeping tariffs could undermine America’s global standing, as allies may feel coerced into unfavorable agreements. Taxes on raw materials and essential goods used in U.S. factories could fuel new inflationary pressures and potentially stall economic growth—concerns the White House has dismissed.

Despite Trump’s eagerness, many questions about the tariffs remain. As the self-imposed deadline approached, it seemed that nothing was set in stone except the President’s determination to impose the taxes.

The legal legitimacy of the tariffs is also under question. On Thursday, a U.S. appeals court heard arguments on whether Trump had overstepped his authority by declaring a "national emergency" under the 1977 law to impose tariffs—thereby bypassing Congressional approval.

Trump appeared pleased as the world waited to see what he would do. On Thursday morning, he posted on Truth Social:
"Tariffs are making America great and rich again.



Hastily Crafted Tariff Policy


Countries have viewed President Trump’s policy as carelessly designed—one that could slowly impose long-term damage to America’s strength and prosperity.

Scott Lincicome, Vice President at the Cato Institute, said:
"By Friday morning, we’ll only know that U.S. import taxes will be historically high and complex, and because the agreements are so vague and incomplete, the uncertainty of this policy will remain very high."
Everything else, he added, remains undecided.

The new tariffs are based on measures announced in the spring. Trump initially set the Friday deadline following market unrest in April caused by his previous "Independence Day" tariffs.

Failing to secure enough trade agreements with other countries, Trump extended the timeline and sent letters to world leaders, leading to a rush of negotiations.

Swiss imports will now face a 39% tax rate—higher than the 31% rate Trump had threatened in April.while Liechtenstein’s rate was reduced from 37% to 15%. Countries not listed in Thursday night’s executive order will be subject to a default 10% tariff.

Trade Deals Stir Anxiety Among Allies
Over the past few weeks, Trump held talks with the European Union, Japan, South Korea, Indonesia, and the Philippines on a trade framework, giving him the opportunity to claim that other nations were caving under his threats.

On Thursday, he claimed there were deals with other countries but declined to name them.

The day began with palpable tension. The EU was awaiting a written agreement on a 15% tariff deal. Switzerland and Norway were among dozens of countries unaware of their tariff rates, while Mexico’s tariffs were frozen at 25% for a 90-day negotiation period following a phone call with Trump that morning.

European leaders faced criticism over the perception of bowing to Trump, though they emphasized this was only the start of talks and stressed the importance of maintaining U.S. support for Ukraine in its war against Russia.

Canadian Prime Minister Mark Carney had already suggested that Canada could no longer trust the U.S. as an ally, and Trump refused to speak with him on Thursday.


Facing Legal Challenges


With a 25% tariff announced by Trump on Wednesday, India is now less likely to benefit from the shift in manufacturing away from China. While the Trump administration has tried to challenge China’s manufacturing dominance, it remains locked in lengthy trade talks with the country, which is subject to a 30% U.S. tariff and is retaliating with a 10% rate on American imports.

Major corporations had begun issuing warnings earlier in the week that the tariffs were beginning to strain them financially. Ford Motor Company estimated it could lose $2 billion this year due to the tariffs. French skincare company Yon-Ka warned of hiring freezes, reduced investments, and increased prices.




Will Trump’s New Tariffs Survive Legal Scrutiny?




Federal judges expressed skepticism on Thursday about Trump’s use of the 1977 law to declare America’s long-standing trade deficit a "national emergency," thereby justifying tariffs on nearly every country.

Judge Todd Hughes of the U.S. Court of Appeals for the Federal Circuit told the Justice Department attorney representing the administration:
"You're asking for unlimited authority."

The judges did not issue an immediate ruling, and the case is expected to eventually reach the Supreme Court.

The Trump White House has portrayed the increase in federal revenue from the tariffs as a sign of success in reducing the budget deficit. So far this year, $127 billion has been collected in customs duties—almost $70 billion more than last year.