President Donald Trump announced yesterday that he intends to send letters to trade partners within the next one to two weeks outlining unilateral tariff rates. This is ahead of the July 9 deadline, when higher duties are set to be reintroduced against dozens of economies.

"In about a week and a half or two, we'll send letters to countries and tell them what the deal is," Trump told reporters on Wednesday at the John F. Kennedy Center for the Performing Arts in Washington, where he attended a performance. "At some point, we'll just send the letters. You can accept it or reject it," he added.

This statement immediately sparked concern and uncertainty across global financial markets. Trump's decision is seen as a risky move that could escalate trade wars and inflict severe damage on the global economy. Unilateral tariffs are typically viewed as an aggressive pressure tool that may provoke retaliatory measures from trading partners, leading to higher prices for consumers, reduced investment, and slower economic growth. Trump has repeatedly shifted tariff deadlines, and July 9 is the latest.

Supporters of this approach argue that tariffs are an effective means of protecting domestic industries and jobs. They believe the threat of high duties will force trading partners to make concessions and agree to more favorable trade deals with the U.S.

However, it remains unclear whether Trump will follow through. He has a history of setting two-week deadlines that either pass without action or are delayed. For example, on May 16, Trump stated he would announce tariff rates within 2–3 weeks. In April, he introduced new duties for dozens of countries but suspended them for 90 days after markets plunged and investors feared a global recession. Despite ongoing negotiations, the only trade framework the U.S. has reached is with the UK and a tariff truce with China.

Even that truce with China is now under threat after Washington and Beijing accused each other of failing to comply with terms. This led to extended negotiations in London this week on how to implement the agreement.

Earlier Wednesday, Trump said the framework with China is finalized and will allow Beijing to export rare earth metals and magnets, while the U.S. will let Chinese students study in American colleges and universities.

When asked whether he would extend the deadline for countries to strike a deal before higher tariffs take effect, Trump replied that he is open to the idea but added:

"I don't think we'll need to."

Trump initially planned to negotiate with each partner individually but abandoned that idea due to limited capacity. Instead, he prioritized talks with key economic partners. His team is currently working on bilateral deals with India, Japan, South Korea, and the European Union.

Also on Wednesday, Commerce Secretary Howard Lutnick said the EU will likely be one of the last agreements finalized, expressing disappointment over negotiations with the 27-member bloc.

Technical Outlook for EUR/USD

Currently, buyers need to break above the 1.1530 level. Only then will it be possible to aim for a test of 1.1570. From there, the price may reach 1.1625, although this will be difficult without support from large players. The ultimate bullish target is at 1.1655. If the instrument declines, only around 1.1490 do we expect significant buying interest. If that fails, a drop to 1.1450 or even 1.1410 could be necessary to attract buyers.

Technical Outlook for GBP/USD

For GBP buyers, the key is to break above resistance at 1.3590. Only then can the price target 1.3615, beyond which upward movement becomes more difficult. The most optimistic target is 1.3650. In case of a decline, bears will aim to take control at 1.3560. A break below this level could seriously damage bullish positions, pushing the pair down to 1.3530 with a chance to reach 1.3505.