A number of U.S. trading partners remain without finalized agreements as President Donald Trump’s August 1 tariff deadline hits, raising concerns among businesses and global markets.
Trump unveiled sweeping import taxes on goods coming into the U.S. from nearly every country in April, sending global markets into a panic.
Most of the tariffs have since been postponed twice, allowing time for bilateral negotiations. In early July, Trump began sending out letters telling countries that higher tariffs would be imposed on dozens of them on August 1 unless they struck new deals with the U.S.
Since then, several trading partners, including South Korea, the United Kingdom, the European Union, Vietnam, Indonesia, the Philippines and Japan, have struck deals.
Thailand and Cambodia have also struck trade deals, Commerce Secretary Howard Lutnick said on Wednesday night. Trump had threatened to end talks with the two nations if they did not agree to a ceasefire to halt their military conflict.
But the White House warned that the deadline would not be changed, and countries that have been unable to reach trade agreements by Friday will face higher tariffs. That could affect some of the biggest U.S. trading partners like Mexico, Canada, China, India and others.
Mexico
Mexico remains a key U.S. tariff target, with Trump citing “drugs and illegal migration” as reasons for imposing new levies. He has argued that “Mexico has not done enough to secure the border” and warned that any retaliation would trigger even higher tariffs from the U.S.
Mexico is set to be hit with a 30 percent tariff. Although the Mexican government has stressed the importance of resolving differences, little progress has been made in recent weeks.
President Claudia Sheinbaum said this week that she still hopes to reach an agreement. But business leaders are skeptical.
“It’s extremely wishful thinking,” Pedro Casas Alatriste, CEO of the American Chamber of Commerce in Mexico, told Politico. “I have a little percentage of hope that something might happen.”
Canada
Trump has said he did not expect a trade deal with Canada before the deadline, telling reporters: “Canada could be one where there’s just a tariff, not really a negotiation.” Prime Minister Mark Carney insisted Canada “will not accept a bad deal” or be rushed.
Without a deal, U.S. importers could face a 35 percent tax on Canadian goods, though items covered under NAFTA are exempt. Trump has already imposed steep tariffs on Canadian aluminum, steel and vehicles.
While Trump previously sounded optimistic about reaching a deal, Canadian officials have downplayed chances of a breakthrough, describing recent talks as “cordial” but stressing more work is needed.
China
Trade talks with China have followed a different path, with both sides engaging in tit-for-tat tariffs that peaked at 145 percent for Chinese imports and 125 percent for U.S. goods. A truce in May reduced those rates to 30 percent and 10 percent, respectively, but it expires on August 12.
Their latest meeting in Stockholm ended without an agreement to extend the truce, pending Trump’s approval.
Australia
Australia currently faces a baseline 10 percent tariff due to its trade deficit with the U.S., but rates could rise to 15 percent to 20 percent if Trump adjusts his policy. While not in formal talks, Australia recently eased restrictions on U.S. beef—a move U.S. officials credited to Trump, though Prime Minister Anthony Albanese denied it was a direct response to U.S. pressure.
India
Trump imposed a 25 percent tariff on India this week, citing unfair trade practices and India’s ties with Russia. Although he called India a “friend,” he argued that their tariff levels are among the world’s highest.
The new rate is slightly below the 26 percent imposed on Trump’s tariff “Liberation Day,” April 2, but still within the high range Trump had considered.
Taiwan
Taiwan is negotiating to avoid a 32 percent tariff and has pledged to increase purchases of U.S. goods to narrow its $73 billion trade deficit. Talks are ongoing in Washington, but no agreement has been reached.
President Lai Ching-te faces domestic pressure to resist U.S. demands while also maintaining strong U.S. ties amid growing threats from China. A 90-day pause on tariffs is currently in place, and Taiwan’s government says it’s committed to “mutual benefit and reciprocity” in its trade relationship with the U.S.
Brazil
Trump plans to impose a 50 percent tariff on Brazilian imports starting next week, citing political retaliation linked to former President Jair Bolsonaro’s alleged coup attempt. President Lula da Silva has said he’s unafraid of Trump’s move. The tariff order was signed Wednesday but did not confirm whether the August 1 deadline remained relevant.
Mark Schiefelbein/AP
