The 90-day suspension of sweeping tariffs announced by President Trump earlier this year is set to expire Wednesday, raising concerns about renewed trade tensions and economic fallout.
On April 2, Trump declared what he called “Liberation Day,” unveiling tariffs that targeted imports from nearly every major trading partner. The move triggered steep declines in U.S. stock and bond markets, prompting the White House to issue a temporary pause to allow countries to negotiate bilateral trade agreements.
Since then, the administration has claimed progress on hundreds of deals, but only three partial frameworks have been publicly confirmed. As the deadline approaches, Treasury Secretary Scott Bessent said the administration will begin sending formal letters to governments this week, warning that tariffs could automatically snap back to April 2 levels by August 1 if talks remain stalled.
The tariffs cover a broad range of goods, from industrial machinery and electronics to consumer products. Businesses and trade groups have voiced growing alarm that the uncertainty will disrupt supply chains just ahead of the holiday import season. While the White House has insisted that the letters do not create a fresh negotiating deadline, many observers see them as a final push to extract concessions before penalties resume.
International partners have been scrambling to respond. Several European and Asian governments have signaled they may retaliate if the U.S. reimposes the duties, risking a new wave of counter-tariffs. Analysts warn the standoff could dampen global growth if both sides escalate further.
Source: TIME