Trump Signals End of Tariff Grace Period, New Levies Coming Within Weeks
The White House is preparing to notify trade partners of new duties as the EU braces for a deal that keeps existing tariffs in place.
President Donald Trump has signaled the end of a grace period on trade tariffs, announcing that new duties will be revealed “within the next two to three weeks” and acknowledging his administration cannot negotiate deals with all of its commercial partners.
The president noted that Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick “will send letters essentially informing people” about “how much they will be paying to do business with the United States.”
“I think we will be very fair. But it is not possible to meet the number of people who want to see us,” Trump said during a meeting with business leaders in the United Arab Emirates. He claimed there are “150 countries that want to make a deal,” but did not specify which nations would receive the letters.
Trump first announced higher tariffs on dozens of trading partners on April 2, but suspended them for 90 days amid market turmoil to allow time for foreign governments to negotiate. In recent weeks, however, the president has shifted away from the idea of negotiating with each partner individually.
According to a Bloomberg report, “While the Trump administration is prioritizing trade talks with over a dozen countries, a lack of staff and capacity makes it impossible to conduct simultaneous negotiations with all countries involved in the president’s so-called reciprocal tariff plan.”
Earlier in May, Trump indicated he would simply impose tariff levels on many countries seeking to avoid higher duties. Negotiations are still underway with several economies, including Japan, South Korea, India, and the European Union. Trump recently agreed to a trade framework with the United Kingdom and a temporary mutual tariff reduction with China to create more time for talks.
Brussels Braces for Tariffs to Remain
Meanwhile, the European Commission is preparing for a trade agreement with the U.S. in which tariffs on European products will be maintained.
“With these tariffs, the U.S. believes it has leveled the playing field,” EU official Matthias Jørgensen told MEPs at the European Parliament in Brussels on Thursday. “It is very likely that we will not be able to completely abolish the tariffs – and then we may have to proceed with countermeasures on our side,” he warned.
Since mid-March, the Trump administration has imposed 25% tariffs on European steel and aluminum, 25% on European cars, and 10% on all European imports.
“From our talks with the Commission, it is clear that it will be difficult to get U.S. tariffs below 10%,” a European diplomat told Euronews ahead of a meeting of the 27 EU trade ministers on Thursday.
Polish Deputy Economy Minister Michał Baranowski cautioned that “it will be very difficult to pass a deal with 10% tariffs through the Council.”
According to a diplomatic source, France and Germany are expected to voice the strongest objections to such an agreement, while countries including Hungary, Ireland, and Italy appear less concerned.
