A growing number of Republicans are becoming frustrated by President Trump’s absence of tariff agreements as the July 8 deadline approaches, which may trigger a resurgence of significant tariffs on global imports.
The administration has declared a deal with China and the UK, asserting that it’s diligently working on additional agreements. Officials also indicate there might be some flexibility regarding the deadlines.
“I believe they’re making every effort, and I can attest to that,” said Sen. Susan Collins (R-Maine). “However, the initial approach will likely cause numerous complications, given the extensive workload and the necessity to negotiate with multiple countries.”
When asked about her concerns, Collins hesitated, admitting, “Yes, very.”
In April, Trump introduced a wide array of tariffs, stating that imports from various countries would face substantial obligations. This announcement positively impacted the stock market, and the president later indicated a shift in strategy, delaying implementation for 90 days to allow for negotiations.
While this initial delay aided market recovery, stocks had not reached their pre-tariff highs even then.
The short timeframe and the lack of transactions thus far have unsettled Capitol Hill.
“Members are urging the president to finalize trade agreements swiftly since clarity and certainty are crucial from a business perspective,” noted a GOP aide.
“Clearly, the president has a legitimate and ambitious goal for economic growth. That doesn’t materialize amid prolonged market uncertainty,” the aide continued, pointing out that many companies have not only halted growth initiatives but have also incurred losses due to uncertainties surrounding Trump’s tariffs, forcing them to shift operations overseas.
Additionally, there is reported confusion regarding the Trump administration’s representatives overseeing the tariff matters.
“Not only are they stretched thin, but there’s also ambiguity surrounding who’s leading these efforts,” aides commented, noting that Treasury Secretary Scott Bescent and Commerce Secretary Howard Luttonick have both been seen as taking charge. “I just don’t think that’s effective.”
There is a strong desire among members for swift trade agreements to provide greater certainty for businesses.
“There’s definitely a lot of uncertainty,” stated Sen. Sherry Moore Capito (R-W.Va.). “Everyone understands the administration is working toward this and is eager for more concrete successes.”
“With capital rollouts uncertain, the need for clarity is even more pressing. I believe as we move into July, there could be significant victories that might alleviate some of this tension,” she added. “They started off strong, secured a few wins, and then things went a bit quiet.”
As markets rebound, tariffs are drawing renewed attention, while Capitol Hill refocuses on Trump’s legislative agenda. This week, the Senate plans to advance its budget adjustment package, which seeks to extend and broaden the 2017 tax cuts. They aim to finalize the bill by July 4, although that deadline could be at risk.
The tax legislation is also designed to provide stability for businesses, leading many senators to view the two matters as interconnected.
“This is fundamentally about certainty, and the existing uncertainties compound the challenges businesses face,” a Senate aide remarked.
Bescent remained at the G7 Summit in Canada after Trump departed early on Monday night. The Treasury did not announce any concrete developments from Bescent at the G7 concerning trade, but he suggested earlier this month that the July 8 deadline may allow for some flexibility for certain nations.
“For the EU, countries negotiating in good faith can continue discussions and potentially adjust deadlines,” Bescent explained. “However, those who are not negotiating will not receive any leniency.”
Source: thehill.com