US Officials Shift to Slimmer Trade Deals to Avoid Trump's July Tariff Deadline – FT

US Pursuing Limited Trade Deals Ahead of Trump’s Tariff Deadline

In a strategic shift, US President Donald Trump's trade team is opting for narrower, fast-track trade agreements rather than comprehensive deals with major partners, according to a Financial Times (FT) report released Tuesday.

The move comes as the July 9 deadline approaches—set by President Trump to trigger a new round of strict US tariffs unless significant trade progress is made.

Details from Inside the Negotiations

Sources familiar with the talks told the FT that US trade officials are scrambling to secure sequential and limited pacts with the most commercially active partner countries.

• These "thin deals" aim to resolve specific tariff-related issues quickly.
• The urgency stems from the White House’s renewed threat to impose the most punitive tariffs yet if deals are not finalized in time.
• Broader agreements, including those with China, the EU, and Japan, are reportedly on hold or being pared down.

Deadline-Driven Diplomacy

The July 9 tariff deadline has increased pressure on both the US administration and global counterparts. A return to protectionist policy could stoke market volatility and weigh on global trade.

The strategy suggests a pragmatic pivot from a long-shot bid for large multilateral deals to quick wins that could be politically advantageous for the Trump administration.

Why It Matters for Markets

Markets are watching closely. A failure to avert tariffs could:

• Disrupt global supply chains.
• Pressure emerging markets.
• Increase inflation in key sectors like automotive, semiconductors, and agriculture.

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