Today in one sentence: Only 10 of about 60 countries have secured trade deals with the U.S. ahead of Trump’s August 1 tariff deadline; Trump delayed a planned tariff increase on Mexican goods for 90 days; Trump threatened new tariffs and cast doubt on a trade deal with Canada after Prime Minister Carney said the country will recognize a Palestinian state at the UN in September; Trump gave 17 major drugmakers 60 days to voluntarily lower U.S. prices to match the lowest rates in other wealthy countries; inflation rose 0.3% in June and 2.6% from a year earlier, as tariff-driven goods prices jumped 0.4% and core inflation hit 2.8%; the Trump administration is paying more than 154,000 federal workers not to work through its deferred resignation program; and Trump announced plans to demolish the East Wing of the White House to build a $200 million, 90,000-square-foot ballroom modeled after Mar-a-Lago and funded by private donors he called “patriots.”

1/ Only 10 of about 60 countries have secured trade deals with the U.S. ahead of Trump’s August 1 tariff deadline, leaving the rest facing new import taxes starting Friday. The tariffs stem from Trump’s April 2 “Liberation Day” announcement, which imposed a universal 10% tariff on nearly all imports and higher rates of up to 50% for certain nations. But after market turmoil and recession fears, the White House paused implementation and gave countries 90 days to negotiate deals. The U.S. has since reached agreements with the UK, EU, Japan, South Korea, Vietnam, Philippines, Indonesia, Thailand, Cambodia, and Pakistan. Those countries will face rates between 10% and 20%, while others could face rates up to 50%. Trump also ordered a 50% universal tariff on copper, revoked duty-free treatment for low-value imports, and set a 25% tariff on Indian goods, citing trade barriers and ties to Russia. The U.S. average tariff rate has climbed from 2.5% in January to 18.4% – the highest since 1934. “We have made a few deals today that are excellent deals for the country,” Trump said, without offering specifics. Meanwhile, a federal appeals court questioned whether Trump even has the legal authority to impose the tariffs at all. “He’s drawing his power from a place where it doesn’t even exist,” an attorney for the coalition of 12 Democratic-led states said. Several of the judges challenged the White House’s use of the 1977 International Emergency Economic Powers Act, with one noting, “IEEPA doesn’t even mention the word ‘tariffs.’” Another asked, “Why would we read tariffs into that statute?” A ruling from the appeals court is pending. (Associated Press / Washington Post / New York Times / CNN / Wall Street Journal / Associated Press / Politico / New York Times / CNBC / Bloomberg / CNN / Washington Post / CNBC)

2/ Trump delayed a planned tariff increase on Mexican goods for 90 days, keeping existing rates in place while trade talks continue. Trump said the current deal, which includes 25% tariffs on fentanyl and cars, and 50% on metals, would remain unchanged during the extension. Trump claimed Mexico agreed to drop “many” non-tariff trade barriers, but gave no specifics. Mexican President Claudia Sheinbaum confirmed the pause and said “we avoided the tariff increase,” but added that Mexico made no new concessions. (Politico / New York Times / NPR / CNBC / CNN / Washington Post)

3/ Trump threatened new tariffs and cast doubt on a trade deal with Canada after Prime Minister Carney said the country will recognize a Palestinian state at the UN in September. Trump said the move would make it “very hard for us to make a Trade Deal with them,” as a 35% tariff on Canadian goods is set to take effect Aug. 1 if talks fail. Carney said the peace process was “no longer tenable” and linked recognition to Palestinian elections excluding Hamas and a pledge of demilitarization. Israel called the move a “reward for Hamas” and accused Canada of bowing to a “distorted campaign of international pressure.” Secretary of State Marco Rubio, meanwhile, said it “sets back peace” and called Carney’s approach “clumsy.” (USA Today / Bloomberg / Politico / The Guardian / CNN / Washington Post / Axios / CBC / New York Times / Associated Press)

4/ Trump gave 17 major drugmakers 60 days to voluntarily lower U.S. prices to match the lowest rates in other wealthy countries. He demanded companies adopt a “most favored nation” pricing model for Medicaid and all new drugs, sell directly to patients at discounted rates, and return increased overseas revenues to U.S. taxpayers. Trump warned that if they “refuse to step up,” his administration would “deploy every tool in our arsenal to protect American families from continued abusive drug pricing practices.” The White House also raised the possibility of new tariffs on European-made medicines and importing cheaper drugs from abroad. The drug industry’s main lobbying group, PhRMA, called the plan “importing foreign price controls,” while Pfizer said talks with the administration had been “productive.” (Bloomberg / Reuters / The Guardian / New York Times / Axios / The Hill)

5/ Inflation rose 0.3% in June and 2.6% from a year earlier, as tariff-driven goods prices jumped 0.4% and core inflation hit 2.8% – matching the highest rate of the year. Yesterday, the Fed held interest rates steady for the fifth straight meeting, though two governors dissented in favor of a cut. Powell said the inflationary effects of tariffs “could be more persistent,” and warned that “is a risk to be assessed and managed.” Inflation-adjusted consumer spending rose 0.1%, while wages and savings were flat. Trump, meanwhile, attacked Powell, calling him “TOO STUPID & TOO POLITICAL” and accusing him of “costing our Country TRILLIONS OF DOLLARS.” (Washington Post / CNN / Bloomberg / Wall Street Journal / Axios)

6/ The Trump administration is paying more than 154,000 federal workers not to work through its deferred resignation program. The workers, about 6.7% of the civilian workforce, agreed to leave their jobs but continue to receive full pay through at least September as part of the buyout program run by the Department of Government Efficiency. The Office of Personnel Management said the program gave workers a “dignified and generous departure” and claimed it “delivered incredible relief to the American taxpayer.” Senate Democrats, however, estimated the cuts will cost $21.7 billion, calling it “reckless waste.” One critic said the plan created “a waste-creation exercise.” (Washington Post / ABC News / New York Times / The Hill)

7/ Trump announced plans to demolish the East Wing of the White House to build a $200 million, 90,000-square-foot ballroom modeled after Mar-a-Lago and funded by private donors he called “patriots.” The new venue will seat 650 people – over three times the capacity of the current East Room – and eliminate the need for what Trump described as the “large and unsightly tent” problem. Construction will begin in September and is expected to finish before the end of his term. Trump said the project would be “a great legacy project” and “his gift to the country,” adding: “No president knew how to build a ballroom.” (New York Times / Washington Post / Wall Street Journal / CNN / NBC News / NPR / Politico)

The midterm elections are in 460 days.

Two years ago today: Day 923: "Any day now."
Six years ago today: Day 923: Animosity.
Seven years ago today: Day 558: Unhinged.
Eight years ago today: Day 193: Total quitters.