U.S. President Donald Trump on June 11 warned that he will begin sending “take‑it‑or‑leave‑it” trade proposals to nations ahead of a July 8 deadline, promising to impose unilateral tariffs up to 55 percent if agreements aren’t accepted.
At a Glance
- Trump will send formal trade deal proposals within “the next week or two”
- A 90‑day pause on sweeping “reciprocal” tariffs will expire on July 8
- Treasury Secretary Scott Bessent says deadlines may be extended for countries negotiating in good faith
- So far, only the UK and China have reached trade deals; negotiations continue with about 15 other major economies
- Financial markets fell on June 12, with the Dow dropping 230 points amid investor concerns over escalating trade friction
Tariff Timeline and Stakes
On April 2, Trump declared April 9 “Liberation Day,” imposing 10 percent base tariffs with much higher “reciprocal” levies rising up to 55 percent on targeted economies—a move that rocked markets and triggered the 90‑day pause. The pause set a firm deadline of July 8, after which the tariffs would snap back.
Negotiations have since yielded deals only with the UK and China (the latter involving rare‑earth minerals provisions), while more than a dozen other countries—Japan, South Korea, and several EU nations—are still in talks. Diplomatic channels remain active, but final offers are now expected imminently.
Extension or Ultimatum?
Trump stated he’s ready to roll out formal proposals: “At a certain point, we’re just going to send letters out … this is the deal, you can take it or you can leave it.” He also suggested he doesn’t expect to need to extend the July 8 deadline.
However, Treasury Secretary Bessent told Congress that nations negotiating in good faith might be granted more time. His remarks mark the first official sign that the administration may allow selective flexibility on the cutoff.
Watch a report: Markets react as Trump threatens 55 percent tariffs
Market Response & Global Fallout
The announcement spooked investors—on June 12 the Dow fell roughly 230 points, while the VIX spiked 5 percent, reflecting rising anxiety about a widening trade conflict.
Diplomats are now scrambling to finalize terms ahead of the deadline. Some believe an extension is possible, but others worry that time pressure could lead to rushed compromises—or trigger automatic tariff hikes on key exports if deals aren’t accepted by July 8.
With just under a month remaining, the global economy stands at a precarious junction: diplomatic maneuvering could stave off punitive tariffs—or derail markets if deals stall.
