Nearshore News: Countdown to Tariffs, U.S.–E.U. Talks, BRICS Friction, and Mexico’s Realignment

With the July 9 deadline approaching, the U.S. is racing to close last-minute trade deals—while offering some partners a brief extension. Europe scrambles for a limited agreement to avoid steep tariffs, and Trump escalates rhetoric with a warning to BRICS-aligned nations. Meanwhile, Mexican manufacturers are reconfiguring supply chains in response to rising U.S. trade pressure and shifting geopolitical fault lines.

Nearshore News Summary:

• Countries actively negotiating trade deals could get an extension until August 1 before facing higher tariffs. Treasury Secretary Scott Bessent says the U.S. expects to announce multiple trade deals before Tuesday’s tariff deadline (NYT)
• With just days left before the July 9 deadline, the U.S. and E.U. are scrambling to finalize a trade deal. Negotiators are currently aiming for an "agreement-in-principle" rather than a full trade pact. (Washington Post)
• President Trump threatened an additional 10% tariff on any country aligning with what he called the BRICS’s “Anti-American policies.” (Reuters)
• Mexican manufacturers are rapidly adapting by shifting supply chains away from Asia and aligning more closely with U.S. trade policy. (NYT)

Bessent Says He Expects Trade Deals by This Week’s Deadline

Published: July 6, 2025
Source: NYT

Treasury Secretary Scott Bessent says the U.S. expects to announce multiple trade deals before Tuesday’s tariff deadline, though some countries may have until August 1. The Trump administration plans to send letters this week warning trading partners that failure to finalize agreements will result in a return to steep April tariff rates. 

Key points:

• Trade Deal Push: Bessent said the administration expects “several big announcements” in the next 72 hours as it works to finalize trade agreements.
• August Extension Possible: Countries actively negotiating deals could get an extension until August 1 before facing higher tariffs.
• Tariff Warnings Begin: Letters will be sent to trading partners warning that failure to reach a deal will trigger a return to the steep tariffs announced in April.
• Limited Progress So Far: The U.S. has only reached early-stage deals with Vietnam and the UK, far short of Trump’s 90-deals-in-90-days goal.
• U.S. Leverage Emphasized: Bessent reiterated the administration’s belief that the U.S. holds the upper hand in negotiations and expects quick results once letters are issued.

U.S. seeks limited trade deal with E.U. as Trump’s deadline approaches

Published: July 6, 2025
Source: Washington Post

With just days left before President Trump’s July 9 deadline, the U.S. and E.U. are scrambling to finalize a narrow trade deal that would delay more aggressive tariffs on European goods. The rushed negotiations reflect Trump’s broader effort to reshape U.S. trade through bilateral agreements that bypass traditional institutions like the WTO. 

Key points:

• Limited U.S.–E.U. Deal in the Works: Negotiators are racing to complete a minimalist agreement to avoid Trump’s threatened 50% tariffs on European imports, aiming for an "agreement-in-principle" rather than a full trade pact.
• Trump’s Trade Strategy Sidesteps Global Norms: By favoring bilateral, deal-by-deal negotiations and imposing tariffs unilaterally, Trump is breaking with decades of WTO-backed multilateral trade rules.
• Mixed Results So Far: Despite a blitz of negotiations, only two deals have been announced (with Vietnam and the U.K.), and many talks—including with Japan and India—remain unresolved. Critics say these deals are legally shaky and lack congressional approval.
• European Resistance and Realignment: Europe agrees with the U.S. on concerns about China but rejects Trump’s heavy use of tariffs. Some leaders are preparing for economic fallout — and may be hoping to wait him out, since his trade strategy is unpopular with many American voters.

Trump threatens extra 10% tariffs on BRICS as leaders meet in Brazil

Published: July 7, 2025
Source: Reuters

President Trump threatened a 10% tariff on any country aligning with what he called the BRIC’s “Anti-American policies.” Meanwhile, BRICS leaders—representing over half the world’s population—positioned the group as a modern heir to the Cold War’s Non-Aligned Movement, pushing for reforms to global institutions and emphasizing a multipolar, cooperative world order.

Key points:

• Trump’s Tariff Warning: President Trump announced an additional 10% tariff on countries aligning with BRICS, though he did not define what “Anti-American policies” meant.
• BRICS Pushes Multilateralism: Brazil’s President Lula framed BRICS as the successor to the Non-Aligned Movement, defending global cooperation amid rising tariffs and protectionism.
• Bloc’s Expanding Power: BRICS now includes 10+ member countries, representing over 50% of the world’s population and 40% of global GDP, and aims to reform institutions like the UN and IMF.
• Diverse Yet Divided: While top leaders from India, South Africa, and others attended, internal differences remain. Xi Jinping skipped the summit, and Putin appeared online due to ICC charges.
• Joint Priorities Announced: BRICS leaders voiced concern over Gaza and Iran, backed WTO membership for Ethiopia and Iran, proposed AI data protections, and announced a new climate finance facility involving China and the UAE.

Caught Between Tariffs and China, Mexico Adapts to an Unpredictable U.S.

Published: July 6, 2025
Source: NYT

As U.S. tariffs on Chinese goods reshape global trade, Mexican manufacturers are rapidly adapting by shifting supply chains away from Asia and aligning more closely with U.S. trade policy. With support from the Mexican government and incentives tied to the U.S.-Mexico-Canada Agreement (USMCA), companies are localizing production and sourcing to reduce risk and maintain access to the U.S. market.

Key points:

• Factories Reroute Supply Chains: To avoid U.S. tariffs, Mexican companies like Danfoss are reducing reliance on Chinese imports and sourcing more components locally or from North America.
• USMCA Compliance Accelerates: Businesses are fast-tracking compliance with USMCA rules to ensure tariff-free exports to the U.S., transforming how they plan production and procurement.
• Tariff Uncertainty Spurs Action: Even without firm details on future U.S.-China tariffs, the unpredictability is enough to push companies into long-term strategic shifts toward regional self-sufficiency.
• Government Support Fuels Nearshoring: Mexico’s government — including President Sheinbaum and officials in industrial states like Nuevo León — is actively encouraging domestic sourcing and manufacturing to replace Asian imports.
• North American Identity Gains Appeal: Mexican firms increasingly aim to become “North American” suppliers, embracing USMCA benefits while rethinking their dependence on China for critical inputs.