Why Trump Pushed His Tariff Deadline

Summary

Podcast Summary: The Journal – "Why Trump Pushed His Tariff Deadline"

Episode Information

• Title: Why Trump Pushed His Tariff Deadline
• Release Date: July 8, 2025
• Hosts: Ryan Knutson and Jessica Mendoza
• Produced by: The Wall Street Journal & Gimlet, co-produced with Spotify

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Introduction

In the July 8, 2025 episode of The Journal, hosts Andi Minoth and Gavin Bade delve into the intricacies of former President Donald Trump's aggressive tariff strategies. Titled "Why Trump Pushed His Tariff Deadline," the episode unpacks the ambitious "90 deals in 90 days" initiative aimed at overhauling the United States' trade relationships. This detailed analysis provides listeners with a comprehensive understanding of the policy's inception, execution, challenges, and eventual outcomes.

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The 90 Deals in 90 Days Initiative

[00:31] Andi Minoth:
“Our colleague Gavin Bade is under the gun because he's been covering President Trump's trade policy, which means every few months things get pretty intense.”

Gavin Bade explains that the Trump administration's strategy was unprecedented in its ambition. The goal was to negotiate 90 trade deals within a 90-day window, a task typically extending over several years due to the complexities involved in trade negotiations.

[03:04] Gavin Bade:
“I would say it was a proposal of unprecedented ambition from the U.S. government. Trade deals usually take years, months, if not years to fully negotiate.”

The initiative sought to streamline the negotiation process by focusing on narrower, more specific trade issues rather than comprehensive agreements covering a wide range of economic aspects.

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Early Successes: UK and China

[04:03] Gavin Bade:
“President Trump announcing that the US Will strike a trade deal with the UK.”

In the initial phase, the administration secured a trade agreement with the United Kingdom. This deal granted U.S. farmers increased access to the UK market while the UK received concessions on steel and automobile tariffs.

[04:39] Andi Minoth:
“It was a first notch in the trade team's belt.”

Subsequently, an agreement with China was reached, lowering tariffs and establishing a framework for ongoing negotiations. Peter Navarro, a key trade advisor, emphasized the administration's optimism:

[00:48] Peter Navarro:
“April 2, 2025 will forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed.”

However, these early successes were short-lived, setting the stage for subsequent challenges.

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Struggles with Other Nations: The Case of Japan

[05:13] Gavin Bade:
“What they found out is other countries have trade protections for a reason, just as we do. And you can't simply forget that they have domestic politics.”

Japan emerged as a significant stumbling block in the trade negotiations. Despite being a close ally, the imposition of a 25% tariff on imported cars created substantial friction. The automotive sector's critical role in Japan's economy made negotiations particularly sensitive.

[07:18] Andi Minoth:
“These tariffs on cars have remained a roadblock in the negotiations.”

With Japan facing a crucial election and political instability, the administration faced immense pressure to secure a favorable deal without alienating key domestic and international stakeholders.

[07:39] Peter Navarro:
“I'm going to send letters. That's the end of the trade deal. I could send one to Japan. Dear Mr. Japan, here's the story. You're going to pay a 25% tariff on your cars.”

Trump's strategy involved issuing direct letters to trading partners, outlining potential tariffs and applying pressure to secure concessions. However, the lack of progress with Japan underscored the limitations of the 90-day approach.

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Vietnam Deal – A Closer Look

[08:27] Andi Minoth:
“With just a few days before the deadline, though, the White House did seem to land one more deal.”

In a late attempt to meet the ambitious target, the administration announced a deal with Vietnam. Trump declared via Truth Social that the agreement would eliminate tariffs on U.S. goods entering Vietnam, while imposing a 20% tariff on Vietnamese imports to the U.S. Additionally, goods transshipped through Vietnam would face elevated tariffs of 40%.

[09:12] Gavin Bade:
“We have no evidence that there is any deal of any kind on this.”

Despite the announcement, the deal lacked official documentation or confirmation from the Vietnamese government. This "phantom deal" highlighted the administration's reliance on rhetoric over substantive agreements.

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Letters and Extension of Deadline

[11:11] Gavin Bade:
“You could say at most 3 deals by Monday.”

With only a few deals materialized, Trump opted to escalate pressure on remaining trading partners through standardized letters detailing imminent tariffs. Over a dozen countries received similar communications, each tailored with specific tariff rates.

[12:56] Caroline Levitt:
“The President will also sign an executive order today delaying the July 9 deadline to Aug. 1.”

In a press conference, White House Press Secretary Caroline Levitt announced a three-week extension to the original deadline, shifting it from July 9 to August 1. This move aimed to provide additional time for negotiations while reinforcing the administration's commitment to the tariff strategy.

[13:15] Gavin Bade:
“He could have reimposed these tariffs on Wednesday for any nation that didn't come to him with a deal he wanted. He kicked the can.”

This extension was perceived as a strategic maneuver, balancing firmness with flexibility to achieve the desired trade outcomes without causing immediate market disruptions.

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New Tariffs Proposal on BRICS Nations

[13:07] Andi Minoth:
“He also said he'd impose an additional 10% tariff on goods from BRICS nations.”

During a Cabinet meeting, Trump announced plans to introduce an extra 10% tariff on imports from BRICS countries—Brazil, Russia, India, China, and South Africa. This proposal signaled an escalation in the administration's protective trade policies, targeting emerging economic powerhouses.

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Analysis and Conclusions

[14:25] Gavin Bade:
“There's got to be a reason for that. And maybe it's because he wants to avert the market chaos that happened now.”

Gavin Bade offers critical insights into the administration's strategic decisions. The delay in enforcing tariffs suggests a cautious approach, possibly aimed at mitigating market instability while maintaining leverage in negotiations. The absence of immediate tariff impositions indicates a preference for long-term strategic gains over short-term economic disruptions.

[15:28] Andi Minoth:
“That's all for today.”

The episode concludes by reflecting on the lessons from the 90-day tariff push. Despite the initial momentum, the ambitious timeline proved too constraining, highlighting the complexities of international trade negotiations and the challenges of implementing sweeping economic policies within tight deadlines.

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Key Takeaways

• Ambitious Goals: The Trump administration's "90 deals in 90 days" was an unprecedented attempt to rapidly restructure U.S. trade relationships.

• Initial Successes: Early agreements with the UK and China showcased the potential of focused, narrow negotiations.

• Persistent Challenges: Negotiations with key partners like Japan revealed the limitations of the short-term approach, especially when dealing with complex industries and domestic political pressures.

• Strategic Pressure: The use of standardized letters and deadline extensions demonstrated a blend of coercion and flexibility, aiming to extract concessions without immediate punitive actions.

• Incomplete Deals: The purported agreement with Vietnam lacked substantive confirmation, undermining the credibility of the administration's trade achievements.

• Future Implications: The proposed tariffs on BRICS nations indicated a continued commitment to protectionist policies, setting the stage for future trade tensions.

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This episode of The Journal provides a nuanced exploration of the Trump administration's tariff strategies, offering listeners a detailed examination of the policy's ambitions, execution, and the multifaceted challenges encountered along the way. Through expert analysis and firsthand accounts, the episode sheds light on the complexities of international trade negotiations and the impact of aggressive economic policies on global markets.

Transcript

[Andi Minoth]

So, Gavin, you cover trade. What's gotten you through the past few days? Is it mindfulness meditation? Red Bull? What's your go to?

[Gavin Bade]

I'm a coffee drinker and definitely had a lot of that and some green tea. You know, we've been feeling very under the gun with all these trade negotiation announcements and the letters. You just don't really know what's coming next with this administration. But we're rolling with the punches.

[Andi Minoth]

So to spe, our colleague Gavin Bade is under the gun because he's been covering President Trump's trade policy, which means every few months things get pretty intense. Like back in April when Trump first announced his sweeping Liberation Day tariffs.

[Peter Navarro]

April 2, 2025 will forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed.

[Andi Minoth]

After the announcement, the market tanked. And a week later, Trump paused the tariffs. The goal of that 90 day pause was to cut as many deals with US trading partners as the administration could. Here's Trump trade advisor Peter Navarro.

[Peter Navarro]

We've got 90 deals in 90 days possibly pending here.

[Andi Minoth]

90 deals in 90 days, and we're.

[Peter Navarro]

Going to get this done for the American people.

[Gavin Bade]

The idea was they were giving nations time to negotiate narrow trade pacts or trade deals with the United States. So they were trying to, you know, do dozens of these deals at the same time. A lot of balls in the air when it came to these different negotiations.

[Andi Minoth]

That 90 day tariff pause was due to expire tomorrow. But those 90 deals have proven elusive. Instead, the past three months have been marked by stalled negotiations and just a handful of trade agreements. And yesterday that 90 day deadline was pushed.

[Gavin Bade]

I think that they figure they're close on a lot of these deals, but not quite there yet. And so if we have a little bit more time, maybe they can get the deal that they want. So up the pressure, up the ante, and maybe we revisit this in a couple weeks.

[Andi Minoth]

Welcome to the Journal, our show about money, business and power. I'm Andi Minoth. It's Tuesday, July 8th. Coming up on the show, why 90 deals in 90 days didn't happen. How unusual and ambitious was this kind of 90 day sprint to rework the US's trade relationships?

[Gavin Bade]

I would say it was a proposal of unprecedented ambition from, from the U.S. government. You know, trade deals usually take years, months, if not years to fully negotiate. And, you know, typical trade deals will cover a lot of different subjects, right? You know, everything from market access for agricultural products to, you know, industrial tariffs. You know, sometimes subsidies, sometimes labor practices. Those very full, full fat trade deals, as you might call them, take years to negotiate. These were always going to be much narrower. Right. They were trying to, you know, pick out a few specific irritants that the US has with other economies and try to use the speed and pressure of these trade negotiations, kind of knock them down.

[Andi Minoth]

Yeah. Take some wins and move on to the next one.

[Gavin Bade]

Indeed, that's what they wanted to do, do things in Trump time, as they like to say.

[Andi Minoth]

And about a month into Trump's pause, that approach seemed to be bearing some fruit.

[Gavin Bade]

President Trump announcing that the US Will strike a trade deal with the UK.

[Andi Minoth]

In May, the administration came to an agreement with the United Kingdom. US farmers got increased access to the UK market, and the UK got a break on steel and auto tariffs.

[Gavin Bade]

The 27.5% tariff announced for UK cars is reduced to. At the time, it looked like, oh, they've got a deal. It's still, you know, a little bit before the deadline and maybe they're going to be able to pull this off. We've got some momentum. We've got countries that are coming to talk to us. And so they were pretty optimistic at that point.

[Andi Minoth]

It was a first notch in the trade team's belt. And then the US Had a second success. This time it was an agreement with China that lowered tariffs while the two countries continued to negotiate. The United States and China agreeing on a framework that could lead to a trade deal.

[Peter Navarro]

The U.S. and China agree to reduce.

[Andi Minoth]

Tariffs for the next 90 days. And the relationship between the two nations is, quote, excellent. But that's where the successes stopped. Beyond the UK And China, Gavin says trade talks with other countries have stalled.

[Gavin Bade]

What they found out is other countries have trade protections for a reason, just as we do. And you can't simply forget that they have domestic politics. Right. I think a good example is the Japanese example here.

[Andi Minoth]

Japan, an early target for the US Trade team. Did people think that this was going to be a hard deal to cut?

[Gavin Bade]

I think the Japanese deal was one of the lower hanging fruit for the Trump administration, or at least the prospect of a Japanese deal was. Remember, this is perhaps the U.S. s closest ally in Asia and one of its closest allies around the world. The negotiating teams get along pretty well. And the Japanese trade negotiator, he had been to Washington, D.C. no fewer than seven times. They were doing everything right in order to get a deal with the United States. And the US really wanted one as well. But a lot of these, you know, once you started to get into the minutiae of this deal, it got a.

[Andi Minoth]

Lot more difficult as the two sides talked. One major sticking point was tariffs on.

[Gavin Bade]

Specific industries, and particularly with Japan, the automotive industry. The car tariffs are huge.

[Andi Minoth]

In March, Trump imposed a 25% tariff on foreign cars, including those from Japan. And that's a lot of cars. The US imports $40 billion worth of passenger vehicles from Japan every year. This is also coming at an especially tricky time for Japan, which has a big election coming up.

[Gavin Bade]

Japan's upper house of Parliament has an election on July 20. The Prime Minister's government is already a minority government. They're under a lot of pressure, and so they can't come back and say, hey, we secured a deal with the United States that left in place 25% auto tariffs. I mean, privately we've heard that Japanese officials saying, you know, that would put our entire government at risk. It's a very, very touchy subject for good reason. In Japan, because the automotive sector is so integral to their economy.

[Andi Minoth]

These tariffs on cars have remained a roadblock in the negotiations. Japan's prime minister said in June that the country would do everything it could to protect its automobile industry. Then, last week, Trump appeared to cut off talks with Tokyo. In an interview on Fox News, he suggested he might send the country a letter.

[Peter Navarro]

I'm going to send letters. That's the end of the trade deal. I could send one to Japan. Dear Mr. Japan, here's the story. You're going to pay a 25% tariff on your cars.

[Gavin Bade]

You know, his kind of reaction was just to say, hey, we're going to just send you a letter. We're just going to slap these tariffs on you, and that'll be what you pay. And, you know, if you're ready to come to the table and do what we want, then fine. But, you know, Trump is totally fine with applying these tariffs back on again.

[Andi Minoth]

It wasn't just Japan. Over the last 90 days, Trump and his aides have found it difficult to strike deals with trade partners all around the globe, from Europe to Canada to South Korea.

[Gavin Bade]

A lot of nations have these touch points, these impasses, where it's going to be very difficult to do a deal, especially in short order.

[Andi Minoth]

With just a few days before the deadline, though, the White House did seem to land one more deal. That deal is after the break. Last week, the Trump administration seemed to have a breakthrough. Trump announced a deal with a key trading partner, Vietnam. And on its face, the term sounded pretty favorable to the U.S.

[Gavin Bade]

So Trump, on Truth Social posted that he had come to an agreement with the Government of Vietnam, the Vietnamese leader. And this was going to be for zero tariffs on any US Goods that are going into Vietnam. And in return, what Vietnam would get was 20% tariffs for its products coming into the U.S. but they said if there are transshipped products that are coming through Vietnam, they will be tariffed at a higher rate. They'll be tariffed at 40% instead of 20.

[Andi Minoth]

So to recap, a 20% tariff on Vietnamese goods, but if goods are coming from another country through Vietnam, then they get a higher tariff. This practice, transshipment, has been a major issue for the Trump administration. That's especially true in Southeast Asia, where China has relied on small neighboring countries to get around American trade barriers for years. So this deal that Trump announced seemed like a big win for the President and his trade team. But Gavin says there's just one problem.

[Gavin Bade]

We've not seen any documentation from either government to certify that there actually is a deal, much less anything that's in the deal. You know, no executive orders from from the White House, no further statements besides, you know, a couple laudatory comments from the press team, nothing from the Vietnamese. And so beyond Trump's truth social posts, there is no evidence that there is any deal of any kind on this. And as a matter of fact, we reported that there are some details that are still being worked out here. So this is falls far, far short of a signed seal delivered trade deal with Vietnam. The teams are still hashing out some details here.

[Andi Minoth]

The Vietnamese Embassy in Washington didn't respond to requests for comment. So for those keeping score at home, as of earlier this week, how many of those 90 deals in 90 days did we have?

[Gavin Bade]

I think you could say at most 3. You have the UK deal, which while being narrow was at least, you know, a framework was put out there, a very short document was put out there about it. You had this tariff truce with China, which similarly no one's seen any documentation of. The White House has called it confidential, but they did agree to lower tariffs on China. So there was movement there, but no one's seen any of those details. And then this sort of like phantom trade deal with Vietnam for which we have no documentation whatsoever. So I think if you're being generous, you could say three deals by Monday.

[Andi Minoth]

Morning of this week. The July 9 deadline was fast approaching and no more deals were materializing. So Trump amped up the pressure on some of the U.S. s trading partners. That pressure took the form of letters, which Trump posted publicly on his social media.

[Gavin Bade]

He starts issuing these letters to other nations outlining what they would pay in tariffs. And so this is literally saying in very, very like Trumpy truth social posting language, you know, with all the extraneous capitalizations and things that, you know, maybe dear Prime Minister Sheba of Japan, for instance, here's the tariff you're going to pay, essentially, is what he said. And if you make certain changes and improve your relationship, we will consider changing this tariff rate. But basically just a reminder that if you don't do something different, this is the tariff rate you're going to face.

[Andi Minoth]

Over a dozen countries received letters yesterday. They were all virtually identical, just with different numbers for each country. But there was another key detail in these letters. White House Press Secretary Caroline Levitt highlighted it yesterday in a press conference.

[Caroline Levitt]

The President will also sign an executive order today delaying the July 9 deadline to Aug. 1.

[Andi Minoth]

In his letters, Trump noted that he was pushing his tariff deadline by three weeks.

[Caroline Levitt]

The administration, the President and his trade team want to cut the best deals for the American people and the American worker. That's what they're focused on.

[Gavin Bade]

And in the effort, I think what he's trying to do is up the pressure on them while also extending the deadline and giving himself some more breathing room.

[Andi Minoth]

So it's a bit of carrot and stick. It's a reminder, hey, we're serious, but we're gonna move the deadline a little bit.

[Gavin Bade]

Yeah, we're gonna give you some extra time, but don't be fooled. I'm really serious about these tariffs three weeks from now.

[Andi Minoth]

Today, Trump posted that more letters would be coming, quote, today, tomorrow, and for the next short period of time. He also said that there'd be no extensions past August 1st. And this afternoon in a Cabinet meeting, he disputed that he'd changed the tariff deadline at all.

[Peter Navarro]

It wasn't a change. It was August 1st. We don't change very much. You know, every time we put out a statement, they say he made a change. I didn't make a change. Clarification, maybe.

[Andi Minoth]

In that meeting, he also said he'd impose an additional 10% tariff on goods from BRICS nations. That's Brazil, Russia, India, China, and South Africa. And so, as we look ahead to yet another trade deadline, what do you think the lessons are from these past 90 days?

[Gavin Bade]

It does appear to me that they are at least a little gun shy of reimposing all of these tariffs all at once, at least at this time. I mean, Trump has said, you know, he. He wants to send these letters. He can just tell people what they're going to pay. But you know, he could have reimposed these tariffs on Wednesday for any nation that didn't come to him with a deal he wanted. He kicked the can. That, I think, is the the action we should focus on here more than any of the rhetoric in the letters or anything like that. He could have done it. He didn't do it. There's got to be a reason for that. And maybe it's because he wants to avert the market chaos that happened now, maybe it may be a month down the line, three weeks down the line. He lets all of that happen and go into effect. But he certainly didn't do that this week.

[Andi Minoth]

That's all for today. Tuesday, July 8th. The Journal is a co production of Spotify and the Wall Street Journal. Additional reporting in this episode by Brian Schwartz. Thanks for listening. See you tomorrow.