• Treasury Secretary Scott Bessent prioritizes domestic legislation this week before shifting to trade negotiations.
  • Key deadlines loom, including the July 8 end of the 90-day tariff pause and potential EU tariff snap-back on July 9.
  • A U.S.-Canada deal is tentatively targeted for July 21, with broader trade agreements expected by year-end.

Sequencing Takes Center Stage

Treasury Secretary Scott Bessent emphasized a "sequencing" approach to U.S. economic policy during a Fox News appearance, stating the administration aims to pass critical domestic legislation this week before turning to international trade deals. "We want sequencing here—bill this week, talk about trade deals next week," Bessent said, underscoring the administration's strategy to streamline negotiations and signal priorities.

This comes as the White House faces a tight timeline: the 90-day pause on reciprocal tariffs expires July 8, with tariffs on EU partners potentially returning July 9. Market participants are bracing for volatility, particularly in sectors like technology and manufacturing, where supply chains remain vulnerable to shifting trade terms.

Negotiations in Flux

Behind the scenes, U.S. trade officials are racing to finalize agreements with 17 major trading partners, excluding China. A tentative U.S.-Canada deal is now eyed for July 21 after Ottawa rolled back a proposed tax on U.S. tech firms—a move seen as a concession to advance talks. Meanwhile, the recent U.S.-China agreement on rare earth magnets has eased some tensions, though broader trade terms remain unresolved.

"The sequencing isn’t just procedural—it’s tactical," noted one policy advisor familiar with the discussions. "Getting domestic wins first strengthens the administration’s hand abroad." Businesses, however, continue to grapple with uncertainty, particularly importers facing unclear tariff schedules.

What’s Next

With Labor Day floated as a target for finalizing most trade deals, analysts suggest 80%-90% could be settled by year-end. But as Bessent’s remarks highlight, the path forward hinges on threading the needle between legislative progress and diplomatic maneuvering—all while the clock ticks on tariffs that could reshape global supply chains overnight.