President Trump threatened on Thursday that he would reverse the course with a 90-day suspension on country-specific tariffs if the country does not sign a contract with his administration earlier.
“We don't do the deal we want to do, or we have to do, that's good for both parties – that's good for both parties – then we'll go back to where we were,” Trump said at a camera meeting with his full cabinet.
When asked about where his administration had contracts with the first foreign countries on tariffs, the president said, “It's very close.”
He also did not rule out extending the 90-day suspension implemented on Wednesday.
“We have to see what happens back then,” Trump said.
The president announced a 90-day suspension on increased tariffs on trading partners, during which he reverted foreign tariff rates to 10%. The only exception is China, which is escalating a trade war with the US after retaliation.
When asked about the heavy tariffs in China, which the White House says is currently at a 145% rate, Trump expressed optimism that he could sort out the deal but would not reveal what his next move would be.
“We hope we can make a deal,” he said.
“They've ripped us apart – I can't believe how people were standing because everyone was sitting in my position… But they did it, and what we're doing is to undo it. We'll reset the table.
The president announced a 125% rate in China on Wednesday, raising the rate after 104% hit the country earlier that day. White House officials said Thursday it was 145% in China. He said this is 145% in China as it includes sectors that are not covered by mutual tariffs.
Meanwhile, the European Union has put retaliatory tariffs on hold for 90 days since Trump announced the suspension. The 27-person trading block voted on Wednesday to introduce measures against the US
Trump said negotiations with European countries would be one group.
“We see it as one block,” he said. They added that they are smart to curb retaliation after seeing a trade war with China.
“Look, the EU is very smart, but they really use the US. They were formed with the aim of using the US,” he said.
The president's negotiation team, including Treasury Secretary Scott Bescent and Commerce Secretary Howard Lutnick, were confident in the country that will be at the table during the Cabinet meeting.
About 75 countries have approached administrations to sign contracts in the week since the initial tariff announcement. Bescent said Wednesday that it was a major factor in why the administration chose to suspend it.
Trump's first tariff announcement affected 135 countries, in addition to the tariffs imposed on Canada and Mexico.
