Tue, 08 Jul 2025

Tue, 08 Jul 2025 Faisal Islam: Trump delays tariffs as the rest of world plays hardball

The US president reveals his poker "tell" by showing he is open to delays to secure trade deals.

* No more than 9 deals will be done by July 9, the initial deadline.
* The US has extended its trade talks deadline from July 9 to August 1, with a possibility of further extensions or delays.
* Treasury Secretary Scott Bessent says focus is on 18 countries responsible for 95% of America's trade deficit.
* Letters sent to trading partners this week are similar to the "Liberation Day" letters in April and do not offer any new concessions.
* Market reaction has been calm due to expectations of rolling delays and the Trump administration's inability to strike deals.
* Japan and South Korea were singled out for criticism, with Japan hinting at using its ownership of US debt as leverage.
* The value of the dollar has declined 10% this year against several currencies.
* Trade numbers are shifting, with Chinese exports to the US down 9.7% but up 6% elsewhere in the world.
* Revenues from tariffs have poured into the US Treasury coffers, with record receipts in May.
* The effective tariff rate imposed by the US on the rest of the world is now about 15%, a significant increase from previous years.
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