Global Markets Hold Breath as Trump’s New Tariff Countdown Nears July 9 Deadline

Global markets remain on edge this week as investors brace for a critical deadline set by former President Donald Trump. Despite early optimism following stronger-than-expected U.S. job numbers, uncertainty has returned as Trump’s plan to raise tariff rates takes center stage.

While Trump’s trade team had predicted a surge of new agreements, only three deals have been confirmed so far — with Britain, China, and Vietnam. The latest agreement with Vietnam, however, may create tensions with China, as it imposes heavy tariffs on products trans-shipped through Vietnam but manufactured elsewhere.

In a new move, the Trump administration announced it will begin sending official letters to trading partners starting Friday, detailing the new tariff rates each country will face on their exports to the U.S.

Negotiations with several key partners like India, Japan, and South Korea remain unresolved. India’s talks are reportedly close to completion, while discussions with Japan and South Korea have stalled. The European Union is also pushing to secure a preliminary agreement before the July 9 deadline but faces challenges in balancing the interests of its diverse members.

Adding to market concerns is Trump’s recently passed tax reform bill, projected by some analysts to increase the federal deficit by $3.4 trillion over the next decade. Investors now worry that escalating trade tensions, combined with sweeping tax cuts, could eventually unsettle record-high stock markets.

📊 Chart Concept: U.S. Tariff Impact by Country (July 2025)

Key market updates to watch:

• U.S. financial markets are closed for Independence Day.
• Industrial data expected from Germany, France, Italy, and Spain.
• Fresh PMI reports from Germany, France, and Italy’s construction sectors.

As the tariff deadline approaches, global markets could see heightened volatility depending on how trade negotiations unfold in the coming days.