As the Trump administration unveils sweeping changes to trade policy and Congress considers next steps following last week’s passage of the reconciliation bill, we are monitoring the following:
In a significant shift, the Trump administration has extended the deadline for reimposing reciprocal tariffs to August 1, just days before the 90-day pause was set to end. Today, President Trump sent letters to several countries alerting them to what their tariff rates will be effective August 1, indicating that the tariffs to be imposed next month will be roughly aligned with the rates first announced on April 2. The administration is signaling that the extension to August 1 is designed to incentivize further deal-making in the coming weeks.
- Nations receiving letters detailing updated tariffs include: Japan (25%), South Korea (25%), Myanmar (40%), Laos (40%), South Africa (30%), Malaysia (25%), Kazakhstan (25%), Tunisia (25%), Bosnia and Herzegovina (30%), Indonesia (32%), Bangladesh (35%), Serbia (35%), Cambodia (36%) and Thailand (36%). These rates do not include sectoral tariffs.
- Despite the extended pause, some nations are still working to secure deals as quickly as possible:
- The EU is optimistic that a trade agreement can still be reached this week following a call between Trump and European Commission President Ursula von der Leyen yesterday.
- The UK is working quickly to finalize a deal on steel tariffs, seeking a permanent exemption from the sector-specific tariffs on steel that doubled to 50% on June 4.
- Bangladesh is projecting confidence that negotiations are progressing, as the U.S. has hinted that it may create a separate trading band for least developed countries.
U.S. officials are ramping up diplomatic outreach amid the extended tariff pause, aiming to accelerate progress on key trade fronts.
- Secretary of State Marco Rubio will travel to Malaysia this week to attend the ASEAN summit, with trade expected to be a primary topic of discussion.
- President Trump will host leaders from five African nations (Gabon, Guinea-Bissau, Liberia, Mauritania and Senegal) at the White House on Wednesday to discuss commercial diplomacy around critical minerals as well as regional security issues.
- Secretary of Treasury Scott Bessent announced yesterday that he will meet with his Chinese counterparts to further negotiations “in the next couple of weeks.”
- Yesterday, Trump threatened a 10% import tax on “any country aligning themselves with the Anti-American policies of BRICS.”
President Trump will host Israeli Prime Minister Netanyahu at the White House this evening as a potential ceasefire between Israel and Hamas reemerges. This marks Netanyahu’s third visit to the White House during President Trump’s second term. Meanwhile, representatives of Israel and Hamas are meeting in Qatar in hopes of reaching a ceasefire. Special Envoy Steve Witkoff will also be in Qatar to assist in negotiations. The current proposal would allow for a 60-day pause in hostilities, during which a permanent ceasefire could be negotiated.
- Additionally, Speaker of the House Mike Johnson (R-LA) will meet with Netanyahu at the Capitol tomorrow.
President Trump plans to travel to central Texas later this week to meet with victims of the floods, which has claimed at least 90 lives. President Trump approved a major disaster declaration for Texas, paving the way for the state to receive federal assistance for recovery efforts. The administration is strongly defending the National Weather Service’s response to the flooding amid questions about whether cuts to the National Weather Service budget hampered the issuance of advance warnings.
Following their reconciliation victory last week, Congressional GOP leadership is plotting the next items on their agenda. The House is in recess this week after staying in session to pass the reconciliation bill before their July 4 deadline, while the Senate considers how to proceed on the House-passed recissions package. The Senate is also turning to the annual budget process, considering three appropriations bills this week (Agriculture-FDA, Commerce-Justice-Science, and the Legislative Branch).
- The Senate has also scheduled nomination votes for Preston Griffith (Under Secretary of Energy), Bryan Bedford (FAA Administrator), Scott Kupor (Director of OPM) and William Briggs (Deputy Administrator of the SBA).