The Trump administration's trade policy faces a critical test this week as a federal court weighs the legality of its sweeping tariffs.

TACO or tariffs? An August 1 deadline looms after the European Union became the latest of the top US trading partners to reach a deal with Trump.

WASHINGTON (Reuters) -U.S. President Donald Trump will make his trade deal decisions this week even as separate negotiations with China and the European Union continue, U.S. Commerce chief Howard Lutnick said on Tuesday ahead of Trump's self-imposed Aug. 1 deadline.

President Trump has achieved the remarkable: raising tariffs by more than the notorious Smoot-Hawley Tariff Act of 1930, while—it appears—avoiding the destructive trade war that followed.Including the deal struck over the weekend with the European Union,

The economy was supposed to crumble. The trade war was expected to escalate out of control. Markets were forecast to plunge. None of that has happened. But Trump’s early trade victory may be short-lived.

U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Greer hold a press conference on trade talks.

The Trump administration touts tariffs as part of a wider set of "America First economic policies," which have "sparked trillions of dollars in new investment in U.S. manufacturing, technology, and infrastructure," according to the White House's website.

TRUMP'S U.K. TRIP: President Donald Trump will return to Washington today after meeting with British Prime Minister Keir Starmer to discuss trade and the humanitarian crisis in Gaza and reaching a trade agreement with the European Union.