U.S. President Donald Trump has extended the pause on sweeping reciprocal tariffs until August 1, prolonging a period of uncertainty in global trade as negotiations with major partners remain unresolved. The decision, signed via executive order on Monday, comes just days before the initial 90-day suspension was set to expire. It marks what Forbes has called the administration’s “27th policy flip-flop” since April 2, also known as “Liberation Day” when the White House kicked off its aggressive tariff strategy.
Trump’s initial “90 deals in 90 days” promise has so far produced only two vague trade agreements, one each with Britain and Vietnam. As the deadline shifts once again, questions loom over whether more substantive deals are in the pipeline.
Simultaneously, the U.S. has announced new 25 percent tariffs effective August 1 on imports from 14 nations, including traditional allies Japan and South Korea. The White House emphasized that any retaliatory tariffs would be met with an equal response, signaling continued volatility in global trade relations.
Despite the hardened tone, Washington insists negotiations remain open. Japan, one of the countries most impacted by the proposed tariffs, has already completed seven rounds of talks with the U.S. Tokyo has proposed concessions including increased imports of American agricultural goods and liquefied natural gas. In return, it seeks relief for its automobile exports, which represent about 30 percent of its trade with the U.S.
However, American negotiators have shown little willingness to compromise. President Trump recently characterized Japan as “very tough” and “very spoiled,” warning that auto tariffs could rise to 30-35 percent unless Tokyo grants greater access to U.S. rice and other products.
With Japan pushing for an eighth round of talks, its political constraints particularly an upcoming general election and economic sluggishness — limit its capacity to yield further ground.
As the new August 1 deadline approaches, the possibility of more bilateral agreements remains, but the road ahead is uncertain. Trump’s extended pause buys time, but also highlights the lack of substantive progress and the rising tensions in America’s evolving trade policy.
