Trump Rushes to Finalize Trade Deals Before New Tariffs Hit – What’s Really Going On?

Date: July 31, 2025

By: Global Economy Watch

President Donald Trump is racing against the clock. With his own deadline approaching fast—this Friday—he is under pressure to finalize several international trade deals before sweeping new tariffs on imports take effect. The stakes are high, the pressure is mounting, and the entire world is watching.

This last-minute hustle from the White House is not just about trade. It’s about politics, diplomacy, power, and global positioning. And it’s leading to a flurry of announcements, surprising turns, and strong reactions from countries and investors alike.

Let’s break down what’s happening in a way that’s easy to understand—and surprisingly revealing.

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What's the Deadline About?

Trump has set a self-imposed deadline: finalize major trade agreements by Friday or enforce new tariffs on imports from dozens of countries.

But why this sudden urgency?

1. Tariffs as a Weapon

Tariffs are taxes on imported goods. Trump is using them as a pressure tool to push other countries into trade agreements that are more favorable to the United States. If they don’t cooperate, they’ll face these new taxes.

2. Political Motivation

Trump is also facing pressure from within. With elections coming and public opinion split, he wants to show strength and results, especially in foreign policy and economic matters.

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Deal with South Korea: A Step Forward

On Wednesday, Trump announced a trade framework with South Korea. This means the two countries have reached an initial agreement on how they will trade with each other moving forward. However, it’s still a framework, not a finalized deal.

The White House presented it as a success—proof that Trump's aggressive tariff strategy is working. But critics say it’s just a temporary patch, not a permanent fix.

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Conflict with Canada: Recognition of Palestine Stirs the Pot

While South Korea may be cooperating, Canada is not. A major disagreement emerged after Canada announced its intention to formally recognize a Palestinian state.

Now, you may ask—what does recognizing Palestine have to do with trade?

Well, nothing directly. But Trump is furious about the move and is now casting doubt on any potential trade deal with Canada.

This reaction is a reminder that, in today’s geopolitical environment, trade, politics, and diplomacy are deeply connected. Trump sees Canada’s move as disrespectful to U.S. policy and is retaliating economically.

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Only One Event Scheduled: Executive Orders

Interestingly, despite all the noise, President Trump only had one public event on Thursday: signing more executive orders.

Executive orders are direct commands from the president that don’t need Congress’s approval. They’re fast, powerful, and often controversial. It’s a tool Trump has used frequently in both his first and second terms.

The fact that his schedule is so light publicly suggests that most of the action is happening behind closed doors—in negotiations, calls, and emergency meetings.

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Press Briefing by Karoline Leavitt

To manage the media storm, White House Press Secretary Karoline Leavitt was scheduled to hold a briefing. These briefings are designed to update the public and the press, control the narrative, and answer (or dodge) difficult questions.

What’s unique about this situation is that the briefing comes in the middle of high-tension diplomacy. Expect more scripted answers and less transparency than usual.

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New Sanctions on Palestinian Authority Officials

On Thursday morning, Trump’s administration made another bold move: sanctions on Palestinian Authority officials and members of the Palestine Liberation Organization (PLO).

What Does This Mean?

Sanctions are penalties—usually economic—imposed on people, businesses, or governments. These can include:

• Freezing assets

• Banning travel to the U.S.

• Cutting off financial transactions

Why Is This Important?

It’s a strong message to countries like Canada: if you support Palestinian statehood without U.S. approval, you could be next in line for economic punishment or stalled negotiations.

Trump is doubling down on his pro-Israel stance and trying to isolate any recognition of Palestine that doesn’t align with U.S. interests.

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A Global Chain Reaction

Trump’s approach is bold but risky. Here’s how it’s affecting different parts of the world:

1. European Union

EU leaders are frustrated. They’re watching Trump’s tariff threats closely. Many European countries are already negotiating trade reforms, but new tariffs could hurt their exports, especially cars, machinery, and luxury goods.

2. Asia

South Korea is cooperating, but countries like China and Japan are being cautious. They don’t want to enter any deals under pressure. However, they also can’t afford to lose access to U.S. markets.

3. Middle East

Trump’s sanctions and firm stance on Palestine are creating diplomatic tension. Countries like Saudi Arabia and the UAE are trying to maintain balance—staying close to the U.S. while supporting some level of Palestinian statehood.

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Why This Matters to YOU

You might be wondering: How do these trade deals and tariffs affect regular people in the U.S., UK, or Canada?

Here’s the answer.

1. Prices Will Change

Tariffs raise the cost of imported goods. If the U.S. puts a tariff on electronics from Asia, for example, prices for laptops, phones, and TVs will go up for consumers.

2. Jobs Could Be at Risk

Companies that depend on international trade might cut jobs or move operations if tariffs disrupt their supply chains.

3. Market Volatility

Stock markets respond to uncertainty. As trade tensions rise, markets become unstable, affecting investments and retirement funds.

4. Global Economy Slows

If too many countries start enforcing tariffs, global trade slows down. That means less economic growth for everyone—including the U.K., Canada, and Europe.

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A Surprise Twist: Tariffs as Election Strategy?

Some analysts believe that Trump’s tariff deadlines are less about trade and more about 2026 elections.

By taking a hardline stance, he hopes to rally support from voters who feel the U.S. has been taken advantage of in global trade. It’s a political strategy, not just an economic one.

If he can claim a few trade victories—even symbolic ones—he could use them as proof that “Trump delivers results.”

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Conclusion: What to Expect Next

The next 24 to 48 hours are crucial. Here’s what we’re likely to see:

• More announcements: Trump may rush to finalize partial deals with other countries.

• Market reaction: Expect market fluctuations based on trade news.

• Global tension: Allies like Canada and France might push back.

• Media storm: The press will dissect every move and tweet.

Final Thoughts

President Trump is playing high-stakes poker on the global stage. His bold moves are aimed at reshaping trade, diplomacy, and power in his second term. Whether this strategy brings real success—or backfires—is still unclear.

But one thing is certain: the world is watching, and the clock is ticking.

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