President Donald Trump said he is not considering delaying his July 9 deadline for higher tariffs to resume and renewed his threat to cut off talks and impose duty rates on several nations, including Japan.

“No, I’m not thinking about the pause,” Trump said Tuesday when asked whether he would extend the negotiating period with trading partners. “I’ll be writing letters to a lot of countries.”

U.S. stocks pulled back after Trump’s comments to reporters aboard Air Force One. The S&P 500 Index quickly dropped 14 points on the headlines after trading was steady earlier in the day. The benchmark was down 0.1% as of 3:36 p.m. in New York. The Cboe VIX Index jumped above 16.8 before paring its advance.

A Bloomberg gauge of the dollar changed little after Trump’s remarks, while the yen held onto gains versus the U.S. currency, outperforming all of its Group-of-10 peers.

Investors are closely watching how the president decides to handle the current pause on his April tariffs, which he put on hold for 90 days to allow time for talks.

Trump for weeks has sought to exert leverage over trading partners with threats to set high levies on governments he sees as being difficult. His top economic adviser, Kevin Hassett, a day earlier signaled agreements would be announced after the July 4 holiday and the signing of the tax and spending bill the U.S. Senate approved.

Since the president put his country-by-country tariffs on hold, he and his team have repeatedly promised a flood of agreements that would rebalance trading relationships that he has long decried as unfair. But the only two such pacts thus far have been broad frameworks with the UK and China, which left several key issues unresolved and many specifics to be negotiated later.

The president on Tuesday deepened his criticism of Tokyo for not accepting U.S. rice exports. He also said that auto trade between the two nations is imbalanced. Japan should be forced to “pay 30%, 35% or whatever the number is that we determine, because we also have a very big trade deficit with Japan,” Trump said.

Trump proposed a 24% tariff on Japanese goods in April. Those have been subject to a 10% charge during the negotiating period.

“I’m not sure we’re going to make a deal. I doubt it with Japan, they’re very tough. You have to understand, they’re very spoiled,” Trump said.

The president sounded more optimistic about reaching a deal with India. When asked about the prospects for an agreement over the next week, Trump said: “possibly. That’s going to be a different kind of a deal.”

“It’s going to be a deal where we’re able to go in and compete. Right now, India doesn’t accept anybody in,” he said. “I think India is going to do that, and if they do that, we’re going to have a deal for much less tariffs.”

India’s foreign minister Subrahmanyam Jaishankar said this week his country is close to finalizing an agreement with the U.S., as they work through thorny issues including coming industry-specific tariffs and market access for genetically modified crops from America.

Talks have intensified, with India’s chief negotiator Rajesh Agarwal extending his stay in the U.S. to iron out disagreements.

Other negotiations have proved even more difficult — and Trump has been keen this week to make an example out of Japan. That could be seen as a warning to other countries to get in line or face prohibitive tariffs. Yet the president also showed his penchant for quick reversals last week with Canada, initially cutting off talks but then restarting them days later after Ottawa scrapped a digital-services tax.

Japan’s efforts under Prime Minister Shigeru Ishiba to maintain a steady, friendly approach to negotiations have been put to the test by Trump’s efforts to ramp up pressure for deals. Tokyo has pushed for relief for its crucial auto sector, as well as other tariff exceptions, but the deliberate approach risks backfiring as Trump looks for quick wins on trade.

“I love Japan. I really like the new prime minister,” Trump told reporters. “But they and others are so spoiled from having ripped us off for 30, 40, years that it’s really hard for them to make a deal.”

_____

With assistance from Prateek Mazumdar, Yoshiaki Nohara, Sakura Murakami, Alastair Gale, Elena Popina and Carter Johnson.

_____

©2025 Bloomberg L.P. Visit bloomberg.com. Distributed by Tribune Content Agency, LLC.