Monday, July 7, 2025

Trump’s moving goalposts on tariffs show how hard it will be to win his trade war

President Donald Trump finally got the first part of his agenda through when he signed his sprawling “One Big, Beautiful Bill” on the July 4 holiday as he wanted.

His tariffs haven’t proved as easy.

For his spending bill, Trump somehow tamed the warring factions of Congressional Republicans from populists worried about Medicaid cuts to moderates such as Alaska’s Sen. Lisa Murkowski who got a sweetheart deal for her state to the fiscal conservatives in the House Freedom Caucus who folded like lawn chairs used to watch the fireworks on the National Mall during the holiday.

But if Trump brought the GOP together to pass his tax cuts and increase spending on immigration enforcement, paid for by significant slashes to Medicaid, he faces a much less pliable adversary: the rest of the world, opposed to his trade war.

On Monday, Trump sent letters to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung saying that he would enforce a 25 percent tariff on imports from their countries starting August 1. Trump called the threats an invitation to “participate in the extraordinary Economy of the United States, the Number One Market in the World, by far.”

This came after Trump threatened that any country that worked with BRICS – the group including Brazil, Russia, India, China and South Africa – “will be charged an additional 10 percent tariff” and that “[t]here will be no exceptions to this policy.”

The letters and his stern remarks to other countries embody a Trump tariff deja vu, where he threatens to levy tariffs, fires off harsh words about impending consequences, only for him to ultimately fold and let supposedly hard deadlines pass, while declaring victory without making any substantial gains and putting him on a weaker footing than when he started.

Read more here.

By Eric Garcia

Reading list

Daily briefing

Trump threatens imminent 25% tax on Japanese and South Korean imports

President Donald Trump once again delayed the sweeping import tax hikes he has threatened to impose on imports from nearly every single country by extending a Wednesday deadline to August 1 as he continues to push for foreign nations to enter into trade negotiations with his administration, Andrew Feinberg writes.

Don't forget to complete your registration

We've noticed that you still have not completed your registration to The Independent. Registration is a free and easy way to support our journalism. It allows us to better understand our readers and tailor your experience.

By registering, you'll also gain access to a range of exclusive benefits, including:

Unlock these benefits by completing your registration today. 

QUOTE OF THE DAY

It’s like trying to nail Jell-O to a wall trying to figure out what’s going to happen.

U.S. District Judge Paula Xinis to the Trump administration officials regarding the deportation of Kilmar Abrego Garcia.

What else you need to know