Trump Extends Tariff Deadline, Trade Tensions Persist Globally/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump postponed new tariff hikes until August 1, easing market jitters but imposing 25% tariffs on Japan and South Korea. Japan vows continued negotiations to avoid economic fallout. Meanwhile, questions swirl over Trump’s FEMA plans amid deadly Texas floods.

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Quick Look

• Trump delays tariffs until August 1 amid trade uncertainty
• Japan condemns new tariffs but pledges further negotiations
• Market reactions mixed, eyes remain on trade developments
• Trump silent on FEMA future during Texas flood crisis
• White House sends tariff warning letters to global partners

Trump Postpones Tariff Hikes, Keeps Pressure on Trade Partners

Deep Look

WASHINGTON (AP) — President Donald Trump has pushed back his planned tariff increases by another month, delaying steep new import taxes on dozens of countries until August 1. The decision offered world markets a momentary sigh of relief, even as Trump imposed a new 25% tariff on goods from Japan and South Korea, citing stubborn trade imbalances with the two key U.S. allies.

While markets initially stumbled over the latest round of tariff threats, Wall Street seemed to regain its footing early Tuesday. Futures for the S&P 500 were modestly higher, up 0.1% before the opening bell, while the Nasdaq edged up 0.2%. The Dow Jones Industrial Average slipped 0.1%.

Monday’s announcement had rattled markets, sending the S&P 500 down 0.8% in its biggest single-day decline since June. Despite the turmoil, U.S. indexes remain near historic highs, suggesting that the wild market swings caused by Trump’s trade brinkmanship have calmed somewhat since the spring.

Japan Vows to Keep Negotiating

In Tokyo, Japanese Prime Minister Shigeru Ishiba expressed frustration over Trump’s new tariffs, calling them “extremely regrettable.” Speaking at a Cabinet meeting Tuesday, Ishiba pledged to continue negotiations in pursuit of a mutually beneficial agreement while protecting Japan’s national interests.

He noted that the newly announced 25% tariff rate is lower than some of the harsher figures previously threatened by Trump, leaving room for further talks before the new August 1 deadline. Ishiba instructed his ministers to minimize the impact on Japanese industries and jobs.

White House Silent on FEMA Future Amid Texas Floods

Meanwhile, Trump’s planned Friday visit to flood-ravaged Texas has sparked questions about his controversial push to dismantle the Federal Emergency Management Agency (FEMA).

When pressed Monday, White House spokesperson Karoline Leavitt refused to clarify whether Trump’s plan to phase out FEMA might be reconsidered in light of devastating floods that have claimed more than 100 lives in Texas.

“The president has always said he wants states to do as much as they can,” Leavitt said, praising Texas officials for a “tremendous job.”

She bristled at suggestions that Trump’s deep cuts to federal agencies like the National Weather Service and FEMA may have hampered the government’s response to the flooding, blaming Democrats for politicizing the disaster.

Trump Still Pushing Trade Partners for Deals

Even as he granted another tariff reprieve, Trump’s administration is turning up the heat on America’s trading partners.

Officials confirmed that letters would begin going out this week, warning countries that steep new tariffs could be imposed August 1 if deals aren’t reached. The looming deadline fuels uncertainty for businesses, consumers, and foreign governments, with little clarity about which nations might face new levies — or whether Trump will once again kick the can down the road.

Kevin Hassett, director of the White House National Economic Council, signaled on Sunday that Trump is still weighing his options.

“There are deadlines, and there are things that are close, so maybe things will push back past the deadline or maybe they won’t,” Hassett told CBS’ “Face the Nation.” “In the end the president is going to make that judgment.”

Trump’s tariff threats and trade moves have become a hallmark of his presidency, alternately rattling global markets and driving frantic rounds of diplomacy. For now, trading partners have another few weeks of breathing room—but the uncertainty remains as August approaches.

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