Trump warns letters will replace trade negotiations
US President Donald Trump warns letters may replace formal trade agreements soon as White House lacks progress in trade talks with several countries as July 9 deadline looms. US has been able to strike trade deal only with China and the United Kingdom. On Monday, 30 June, US restarted trade talk with Canada.
In light of this, Trump warns letters could soon take precedence over traditional negotiations.
US President Donald Trump has shown no concrete progress towards his self-imposed goal of signing 90 trade deals in 90 days, a bold promise he made earlier this year while rolling out aggressive so-called “reciprocal tariffs” on key American trading partners. With the deadline just days away on 9 July, critics and economists alike are raising concerns about the growing economic fallout.
Tariffs Without Trade Deals: “I’m Going to Send Letters”, Says Trump warns letters
As he navigates these challenges, Trump warns letters may become the new norm in international relations.
In a televised interview on Fox News’ Sunday Morning Futures, Donald Trump appeared to redefine what he considers a “trade deal,” implying that personalized letters to world leaders could suffice in place of formal agreements.
His statement that he might send personal notes exemplifies how Trump warns letters will redefine diplomacy.
“I’m going to send letters, that’s the end of the trade deal,” Donald Trump told host Maria Bartiromo after she pressed him for clarity on his trade strategy.
He believes that informal communication will enable quicker resolutions, as Trump warns letters could be the future.
Bartiromo, seeking confirmation, responded: “You’re gonna send the letters.”
In a particularly striking moment, US President Trump even rehearsed one such letter aloud, mocking his intended message to Japan—a country he has frequently criticized on trade.
Such unconventional methods raise eyebrows, especially as Trump warns letters may replace crucial dialogues.
“Dear Mr. Japan, here’s the story. You’re going to pay a 25% tariff on your cars.”
This approach indicates a shift in strategy, where Trump warns letters might lead the way in negotiations.
Trump warns letters: 25% tariff for Japanese cars
US President Donald Trump characterized trade in cars between the US and Japan as unfair and floated the idea of keeping 25% tariffs on autos in place, little more than a week before higher duties are set to kick in across the board if a deal isn’t reached.
Ultimately, the preference for letters suggests a new era, where Trump warns letters could shape trade discussions.
“So we give Japan no cars. They won’t take our cars, right? And yet we take millions and millions of their cars into the United States. It’s not fair,” Trump said.
“Now, we have oil. They could take a lot of oil. They could take a lot of other things,” he said, referring to ways Japan might reduce the US trade deficit.
Tokyo’s top trade negotiator, Ryosei Akazawa has repeatedly said that the US’s 25% tariffs on cars are unacceptable, saying that Japan’s car industry has made an enormous contribution to the US economy through the investment of more than $60 billion and the creation of 2.3 million local jobs.
Wall Street Reacts: Trump Earns ‘TACO’ Nickname
Trump’s unpredictable approach has earned him a tongue-in-cheek nickname on Wall Street: “TACO” – Trump Always Chickens Out. The moniker emerged earlier this year when markets plunged following his sudden tariff announcements, only to rebound after the White House granted a three-month pause on enforcement.
Although the president has remained vague about the future of the tariffs, Donald Trump said last week that he was considering extending the 90-day freeze, a move that could further delay economic disruption but also prolong uncertainty.
Few Agreements Reached, Trade Deal Deadline Looms
This scenario raises critical questions as Trump warns letters could soon dominate the diplomatic landscape.
Despite the high-stakes rhetoric, the White House has made limited headway in striking formal trade deals. While the UK and US announced a tentative agreement in May, it left unresolved issues around steel and aluminium imports.
The only notable exception is China, where US officials announced the framework of a new agreement last week. However, details remain scarce.
Treasury Secretary Scott Bessent told Fox Business Network that the US had secured an end to China’s trade barriers on rare earth minerals.
China’s Ministry of Commerce, according to the Associated Press, stated: “China will, in accordance with the law, review and approve eligible export applications for controlled items. In turn, the United States will lift a series of restrictive measures it had imposed on China.”
Economic Warning Signs: Stagflation Concerns Rise
With tariff deadlines approaching and few new trade deals in place, US economists are warning of a looming economic crunch. Many predict price increases across consumer goods if tariffs are reinstated, potentially triggering stagflation—a toxic mix of rising prices and falling employment.
Experts are watching closely, particularly as Trump warns letters could redefine economic interactions.
These fears were underscored by a recent Commerce Department report, which revealed that the US economy contracted by 0.5% in the last quarter, worse than anticipated and largely attributed to trade-related disruptions during the spring.