President Donald Trump’s temporary pause on sweeping tariffs is set to expire July 9, risking reigniting a trade war that could raise costs for businesses and consumers.
Here are six things to know:
- Though some White House officials suggested the July 9 tariff deadline might be pushed back, President Trump told reporters July 1 that he “wasn’t planning an extension” and is preparing to send letters to countries outlining new tariff rates, NBC News reported July 2.
- President Trump announced a deal with Vietnam that will require U.S. companies to pay a 20% tariff on goods directly from Vietnam and 40% on goods routed through Vietnam from other countries. Vietnam agreed not to impose tariffs on U.S. products.
- The tariffs were first announced April 2 during a White House event dubbed “Liberation Day,” with duties including a 24% tariff on Japanese imports and 20% on European goods. The following week, President Trump paused many tariffs for 90 days to negotiate deals with up to 75 trading partners.
- Nearly three months into the pause, no comprehensive trade agreements have been finalized. Talks have continued with the European Union, Japan and India. A U.K. framework deal was reached but requires more details to be worked out.
- The Commerce Department is also investigating imports such as lumber, copper, pharmaceuticals, semiconductors and electronics for national security risks, The New York Times reported June 30. Tariffs could soon be imposed on these sectors under Section 232 of the Trade Expansion Act.
- Hospitals and healthcare organizations have raised concerns that the looming tariffs could raise the cost of medical equipment and pharmaceuticals. In April, Renton, Wash.-based Providence estimated a potential $10 million to $25 million annual cost increase due to tariffs on medical supplies and equipment could materialize. The American Society of Health-System Pharmacists warned that the tariffs also could worsen shortages of critical generic drugs, specifically sterile injectibles, threatening patient care.
