90-day negotiation period "in vain," Trump is anxious

The "deadline" of July 9 has passed, and August 1 is gradually approaching. Trump's patience with tariffs seems to be running out.

Although negotiation teams from various countries are still racing to find solutions to avoid punitive tariffs, the U.S. president has begun to unilaterally set tariff rates. According to CCTV News, on July 12 local time, Trump posted a letter to Mexico and the European Union on social media, announcing that starting from August 1, 2025, the U.S. will impose a 30% tariff on products imported from Mexico and the EU.

According to media reports, Trump stated in his letter to the President of Mexico and the President of the European Commission that Mexico has failed to effectively stop fentanyl from entering the U.S., and the trade deficit with the EU is unfair. He hinted that the two trading partners could still take measures to alleviate the tariffs; otherwise, the rates might be further increased. Trump continues to unilaterally issue letters to set tariff rates, but still leaves some room for maneuver.

According to Xinhua News, Trump also announced this week that starting from August 1, he will impose tariffs ranging from 25% to 40% on imported products from countries such as Japan and South Korea. CCTV News reported that recently, Trump has sent letters to leaders of more than 20 countries, stating that new tariffs will be imposed on these countries starting August 1. In an interview aired on NBC News on the 10th, he also mentioned that trading partners who have not yet received tariff letters may face comprehensive tariffs of 15% to 20%.

The White House had promised to reach multiple trade agreements within 90 days, but so far only agreements have been reached with the UK and Vietnam.

Escalating Threats, Narrowing Negotiation Window

Trump's impatience with the slow progress of negotiations that have lasted for months is becoming increasingly evident. Media reports suggest that the White House may continue to issue unilateral letters in the coming days, setting tariff levels for countries that the president deems no longer worth negotiating with.

Analysts point out that for countries reliant on trade with the U.S., the negotiation window is rapidly closing, and they must make impossible choices in the face of Trump's extreme stance: yield or prepare for battle.

Former Commerce Secretary Wilbur Ross stated on Thursday: Trump is fully prepared to advance tariffs.

The real question is whether Trump will accept the conditions they put on the table? Will they add more chips? What will the outcome be? But the worst part is that he is fully prepared to implement tariffs, and that’s where things stand.

Negotiations Must Accelerate

Reports indicate that U.S. Treasury Secretary Janet Yellen is heading to Japan, and EU negotiators are focusing on automotive and agricultural tariffs, hoping to at least reach a temporary agreement.

India has made progress on a temporary trade agreement. [An article from Wall Street View stated](https://wallstreetcn.com/articles/3750929? Keyword=%E5%8D%B0%E5%BA%A6), on July 11th, Friday, Eastern Time, media reports citing informed sources stated that the United States is working to reach a temporary trade agreement with India, which may reduce the tariff rate that the U.S. plans to impose on India to below 20%.

White House trade advisor Peter Navarro encouraged Canada, which is facing higher tariffs, to continue negotiations, emphasizing that the door to negotiations remains open.

The Last “TACO”?

Trump is frustrated with the so-called “TACO trade” — that is, the market betting that “Trump always backs down from tariff threats,” but some believe this delay could be the last time. Michael Strain, director of economic policy at the American Enterprise Institute, stated:

I worry that we may face a situation — I don’t know if it’s August 1st or in the future — but we will encounter a scenario where he is not bluffing, but everyone thinks he is bluffing. The more this happens, the more I worry that the next time will be the real deadline.

Wall Street Journal previously mentioned that “TACO” (Trump Always Chickens Out) summarizes Trump’s erratic pattern in tariff policy — first throwing out exorbitant threats, then backing down under market pressure or negotiation compromises.

The repeated occurrence of the “TACO” phenomenon is mainly due to Trump having to make concessions in the face of the market's “do-or-die” stance, extending the effective date of tariffs