The 90‑Day Tariff Freeze—Our Wallet’s Panic Button
What Happened in Those Three Months?
Since April 2, the U.S. kept its baseline 10% tariff on many imports and put the “reciprocal” hammer on the back blanket. Meanwhile, Mexico and Canada got a temporary exemption from the usual 25% levy as part of the US‑Mexico‑Canada Agreement. China, which once faced a staggering 145% tariff (yikes!), is now slapped with a flat 30% rate.
“Do we get it back?” The Answer Depends on the Deadline
If a country doesn’t sign a deal before the official cut‑off, those hefty reciprocal tariffs will hit again. Trump announced on Truth Social that letters detailing new duties—ranging from 10‑20% to wild 60‑70%—will start on August 1. He left most of the details under wraps—no clarity on blanket vs. product‑specific rates, though we know autos and steel are pegged at 25% and 50% respectively.
July 9th Gets a Courtesy Extension
It feels like the original July 9 deadline was gently nudged to August 1, giving the U.S. and its trading partners a breather. Expect a tidal wave of headlines in the next 48‑72 hours as markets brace for coins flipping and deals dragging up.
New Deals, New Rates: The Trump Tariff Letter Closer
- Vietnam: Down from a brutal 46% reciprocal rate to a more palatable 20%. A win for the Southeast Asian nation—press releases said Nike shares gave a brief high‑flying boost.
- UK: Not a full package, but a sweet spot: British cars, U.S. beef, and bioethanol can cross the pond at a 10% rate (well below the 25% ban from other countries).
- China: The post‑Liberation Day throne shifted from the monstrous 145% to a more modest 30% blanket levy.
EU‑US: A Global Goose‑egg on the Table
The trading partnership that moves a whopping 30% of global goods—pharma, luxury goods, cars, oil—depends on a final deal. Ursula von der Leyen said a detailed agreement by July 9 was “impossible.” EU officials still hope for a “principle” agreement that carries the 10% tariff baseline. If that fails, the EU keeps its “all instruments on the table” ready.
Japan’s Car/Rice Showdown
Governor Trump threatened a 30–35% tariff if Japan didn’t lock a deal—up from the 24% Liberation Day rate. Watch Japanese carmakers flag off.
China’s Counter‑Tariffs: Brandy of the Brains
China rolled out new duties of roughly 28–35% on EU brandy imports, exempting the big names like Remy Cointreau, Pernod Ricard and LVMH’s Hennessy. Talk about sweet retribution.
Bottom Line for Investors
Every handshake, every “letter,” and every deadline is a push‑pull for your portfolio’s heart rate. Keep tabs, stay amused, and remember: in the world of trade wars, the only constant is volatility.
