Liberation Day Tariffs Pause to Expire on August 1

White House Extends Original 90-Day Deadline

In April 2025, President Donald Trump announced a series of sweeping reciprocal tariffs that affected practically every country in the world. After a week of bipartisan backlash and market turmoil, Trump announced a 90-day pause on the double-digit tariffs. This self-imposed deadline was set to expire on July 9. On July 7, the White House shared that they would begin sending letters about the new tariff rates to nations who have not yet agreed to new trade deals with the United States. Those new tariff rates will not go into effect until August 1. 

The stated goal of the initial 90-day window was to give countries the opportunity to negotiate trade deals. At the beginning of July, only the United Kingdom and China agreed to new trade agreements with the United States. Trump and British Prime Minister Keir Starmer announced their agreement at the G7 Summit in June, which lowered the automobile tariff for the United Kingdom to 10% compared to the standard 25% for other countries in that industry. Both the United States and Chinese governments confirmed the existence of a framework, without offering up many details.

Countries Affected by Liberation Day Tariffs

Apart from the United Kingdom and China, there is little traction between the United States and other countries, including key trading partners like India and Japan. Trump mentioned “We’ve talked to many of the countries, and we’re just going to tell them what they have to pay to do business in the United States, and it’s going to go very quickly,” during a news conference ahead of the deadline.

The exact tariffs range wildly, with a baseline of 10% across the board and a heavier focus on nations that have a trading surplus with the United States. Upon the initial Liberation Day announcement, the effective tariffs paid by United States citizens jumped from 3% to 25%. Even with the pause, that number is now around 15% mainly due to tariffs on the automobile and steel industries that are still in effect.

Will the Reciprocal Tariffs Deadline Be Extended?

White House Press Secretary Karoline Leavitt talked down the severity of the deadline saying that the July 9 date was “not critical” and “perhaps it could be extended, but that’s a decision for the president to make.” Other White House officials, like White House Council of Economic Advisers chairman Stephen Miran and Treasury Secretary Scott Bessent, have echoed these statements and seem optimistic about the likelihood of a beneficial outcome. Those public comments at the end of June were clearly in line with the President’s thinking, but it remains to be seen how firm the new August 1 deadline is.

The Trump administration revels in its unpredictability, using traditional and non-traditional forms of communication to quickly announce new positions. However, Trump has a track record of succumbing to stock market pressure—the week of massive stock market drops were what initially led to the current pause—and previous deadlines have been pushed back multiple times following the initial announcement.

Click here to view the full chart of ongoing negotiations via Holland & Knight.

How to Prepare Strategically and Protect Your Business

For importers, a reduction or removal of tariffs could immediately lower costs and improve profit margins. This could also shift sourcing decisions back toward Chinese suppliers who were previously priced out due to high duties. However, changes in trade policy often lead to short-term volatility. Supply contracts, shipping timelines, and customs classifications may all need to be reviewed or adjusted.

For exporters, the situation is more complex. Some retaliatory tariffs imposed by foreign governments may also be lifted, improving access to global markets. Unfortunately, the lack of symmetry in trade negotiations means that exporters should remain cautious and monitor developments closely.

In either case, businesses engaged in cross-border shipping must prepare for uncertainty. Supply chain flexibility, contract agility, and expert compliance support will be essential in the weeks ahead.

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