Trump Rules Out Extending Tariff Grace Period Ahead of July 9 Deadline

On July 1 (U.S. Eastern Time), President Donald Trump stated that he is not considering an extension of the tariff grace period originally set to end on July 9. In April, Trump introduced a policy of “reciprocal tariffs,” applying duties to nearly all U.S. trade partners based on their trade deficits with the United States. These tariffs were temporarily reduced to a uniform rate of 10%, with a grace period ending on July 9 during which trade negotiations have been ongoing.

When asked whether he would consider extending the negotiation deadline, Trump responded that he had no such plans and intended to send letters to many countries on July 9, notifying them of the specific tariff rates they would be required to pay. Since the policy’s implementation, the United States has only reached an agreement with the United Kingdom, despite repeated claims by the Trump administration of imminent deals with multiple countries.

Trump specifically criticized Japan, accusing it of blocking U.S. rice imports and highlighting imbalances in auto trade between the two countries. He suggested that Japan could face tariffs of 30%, 35%, or any rate determined by the U.S., referencing the significant bilateral trade deficit. Japan has already been subject to a 24% reciprocal tariff rate under Trump’s policy.

In contrast, Trump appeared more optimistic about negotiations with India. When asked whether a deal could be reached in the coming week, he stated it was possible and described it as an agreement that would grant the U.S. market access and competitiveness. Trump expressed the belief that India would open its market, paving the way for an agreement with lower tariffs.