The announcement of a trade agreement between the U.S. and China last week, coupled with Canada withdrawing its digital services tax on tech companies just hours before it was set to be implemented, have bolstered expectations that trade agreements could be reached before President Trump’s July 9 deadline.

However, a deal with Japan is proving troublesome, and U.S. trade officials under Trump are now pivoting to narrower trade agreements in a bid to secure quick wins ahead of a July 9 deadline, when steep reciprocal tariffs are set to return, the Financial Times reported on Tuesday, citing people familiar with the talks.

The administration is seeking “agreements in principle” on limited issues with select countries to avoid the reimposition of tariffs as high as 50%, the FT report stated.

These phased deals mark a retreat from Trump’s original pledge to strike 90 comprehensive trade agreements during a 90-day pause in tariff enforcement, which began on April 2.

While such agreements may spare countries from the harshest levies, a 10% baseline tariff would remain in place as negotiations on broader issues continue.

However, talks remain complicated, and alongside the narrower deal approach, the administration is still considering tariffs on key sectors, the FT reported.