President Trump lashed out when a reporter asked him about the “TACO” acronym, which stands for “Trump Always Chickens Out.” However, Trump may very well exemplify TACO when it comes to the impending July 9 tariff deadline set for U.S trade partners.
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“My expectation would be that for countries that are negotiating in good faith and making progress, that rolling back the deadline makes sense,” said White House economic advisor Stephen Miran on Yahoo Finance’s Opening Bid program this morning.
Tariff Extension Possible for Countries “Negotiating in Good Faith”
Miran added that Trump’s baseline 10% tariff will either stay in place or be marginally lower for countries that strike a deal. A few countries have “convinced the president to lower tariffs below 10%,” said Miran, although he didn’t disclose which countries.
So far, only the United Kingdom and China have agreed to trade deals with the U.S. However, both of these deals are incomplete and pending further negotiations. At the same time, the market has completed a full recovery since Trump announced his “reciprocal tariffs” on April 2. That suggests investors don’t perceive tariffs as a major threat to the U.S. economy. The S&P 500 (SPX) is currently about 0.20% away from cementing a new all-time high.
