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The Trump administration says that it plans to stick to its August 1 deadline for reciprocal tariffs against dozens of nations, as countries scramble to score last-minute trade deals with the U.S.
In the weeks leading up to President Trump's self-imposed tariff deadline, the White House announced framework agreements with Japan, the European Union, South Korea, Vietnam, Thailand, Pakistan and Cambodia. Trump also said on July 31 that his office will enter into a 90-day negotiating period with Mexico that effectively extends the 25% tariffs for goods not exempted under the USMCA trade agreement, while talks with China are ongoing ahead of a separate August 12 deadline.
Read More: Tariffs Threaten to Raise Costs Across U.S. Manufacturing Sector
Other countries have found it more difficult to come to terms with the U.S. In a January 30 post to his Truth Social platform, Trump said that Canada's plans to recognize a Palestinian state will "make it very hard" to reach a deal before August 1. That same day, the White House announced 50% tariffs against Brazil and sanctions against Brazilian Supreme Court Justice Alexandre de Moraes, in retaliation for the ongoing prosecution of former President Jair Bolsonaro, which Trump has labeled a "witch hunt." Other major trading partners such as India and Australia have yet to reach agreements with the Trump administration.
On the eve of the Trump administration's August 1 deadline, a U.S. federal appeals court heard a legal challenge that threatens to overturn the levies altogether. The case filed by a coalition of small businesses claims that Trump overstepped his presidential authority by levying tariffs under 1977's International Emergency Economic Powers Act (IEEPA). According to The New York Times, appellate judges repeatedly pressed Justice Department lawyers over the fact that the IEEPA doesn't explicitly grant the president the ability to levy tariffs, although the court did not issue a ruling. Regardless of how the appeals court rules, the lawsuit is likely to make its way to the U.S. Supreme Court for a final determination.
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