The August 1 deadline gives the countries time to negotiate agreements that could lower the tariffs. Some investors and economists have also noted Trump's pattern of backing off his tariff threats.

The outlook for trade policy remains in flux to start the week, as the European Union and Mexico become the latest to face new, higher tariffs from U.S. President Donald Trump.

Howard Lutnick, the U.S. Commerce Secretary, said on Sunday that a trade agreement between the United States and the European Union is still within reach, but the clock stops on August 1. That’s the final deadline for everyone,