Trump insiders maintain that it would make little sense — politically or from a policy standpoint — for the president to offer any further extensions on trade.
President Donald Trump this week again extended a deadline for levying tariffs on dozens of countries until the end of the month. This time, the president’s allies insist he means it.
Between the president’s growing impatience with the plodding pace foreign governments are taking and a broader fear about the Wall Street TACO meme suggesting “Trump Always Chickens Out,” Trump insiders privately maintain that it would make little sense — politically or from a policy standpoint — for the president to offer any additional grace, according to four people familiar with those internal discussions, granted anonymity to discuss them.
“On Aug. 1, it’s all kicking in,” said Steve Bannon, former White House chief strategist during the first Trump administration. “I’m sure he’s told [Treasury Secretary] Scott [Bessent], ‘There’s no more TACO.’”
Many foreign officials are taking the deadline equally seriously, according to four other people with knowledge of foreign governments’ views of the deadline, granted anonymity to discuss them.
Countries have little choice but to take Trump at his word, looking to appease the president in order to avoid the global economic turmoil that could ensue if he follows through on his many tariff threats — particularly after his April 2 plan rattled world markets and his hefty tariff rates on China in May sent a shock through the supply chain.
While holding firm to the newest deadline could bring the latest phase of tariff discussions to a close, it’s unlikely to be the conclusion to the administration’s trade saga, with industry-specific tariffs on the horizon. Trump is also apt to use tariffs as leverage for everything from getting governments to increase defense spending to having them abandon legislation he considers harmful to U.S. interests.
The president on Monday signed an executive order delaying steep tariff rates from taking effect on nearly 60 trading partners — from July 9 to Aug. 1. The three-week extension gives the administration time to finalize framework agreements with trading partners that are close to the finish line, including India and the European Union, while pressuring others, like Japan and South Korea.