United States President Donald Trump has confirmed the reinstatement of tariffs on imports from major trading partners, effective August 1. This decision follows a 90-day suspension of Trump-era tariffs, which was initially set to expire on July 9, aimed at facilitating new trade agreements. Starting Monday, the U.S. began sending official letters to various countries, including India, warning that higher tariffs could commence from August 1 if new deals are not finalized. President Trump stated that most countries would have either a letter or a deal by July 9, emphasizing the administration's push for swift resolutions.

U.S. Treasury Secretary Scott Bessent clarified that the August 1 date is not a new deadline but rather the confirmed date for tariff imposition, urging partners to expedite negotiations. Without new agreements, tariffs could revert to higher levels seen in April, with some potentially soaring as high as 50% for certain goods. This strategy, termed "maximum pressure" by Bessent, is intended to accelerate trade talks and secure more favorable terms for the United States.

Several key trading partners are significantly impacted by these developments. India, for instance, faces a potential 26% additional import duty on its goods entering the U.S. South Korea, a close ally and the second-biggest trading partner, is actively seeking an extension to the 90-day tariff pause. Despite imposing near-zero tariffs on U.S. imports under an existing free trade agreement, their talks have focused on complex non-tariff barriers. Key issues in South Korea's negotiations include digital services, with U.S. officials expressing concern over proposed legislation that might disproportionately target American tech companies like Google, Apple, and Facebook, while exempting major Chinese counterparts. Restrictions on content providers like Netflix regarding network usage fees and limitations on the export of location-based data by Google Maps are also points of contention. Additionally, agricultural access, particularly for U.S. beef, potatoes, and apples, remains a significant demand from Washington, alongside ongoing discussions about foreign exchange policy and cost-sharing for U.S. troops.

The European Union (EU) is another major entity at risk, with potential tariffs on its goods, ranging from French cheese to German electronics. EU and U.S. negotiators have been engaged in intensive discussions, with Bessent noting good progress after a slow start, expressing anticipation for several significant announcements soon. Deals have already been successfully concluded with the United Kingdom and Vietnam, demonstrating the administration's ability to reach agreements under pressure. Despite the EU's hopes for a deal, it has also prepared to retaliate with tariffs on U.S. exports should negotiations fail.

Market analysts widely anticipate increased volatility across financial markets, impacting both traditional and crypto assets. The reintroduction of tariffs on key sectors such as steel and aluminum is expected to disrupt existing supply chains and exert financial pressure on affected nations. Historically, similar tariff announcements during the 2018-2019 trade war led to fluctuations in equity and crypto markets, often prompting diversification into alternative assets. Seth R Freeman of GlassRatner Advisory predicts market volatility this week, attributing it to lower trading volumes typical after July 4 holidays, which can amplify price movements, and the continued uncertainty surrounding tariff impositions. Even the oil market is expected to see initial price lowering due to higher-than-expected supply, although this effect may be short-lived. The August 1 deadline marks a critical juncture for global trade, with widespread implications for international commerce and economic stability.