Trump May Start Telling Nations New Tariff Rates on Friday
US President Donald Trump said that his administration may begin sending out letters to trading partners as soon as Friday setting unilateral tariff rates ahead of a July 9 deadline for negotiations.
“We’re probably going to be sending some letters out, starting probably tomorrow, maybe 10 a day to various countries saying what they’re going to pay to do business with the US,” Trump told reporters on Thursday as he left Washington for an event in Iowa.
Trump has long threatened that if countries fail to reach deals with the US before next week’s deadline, he would simply impose rates on them, raising the stakes for trading partners who have rushed to secure agreements with his administration.
The US president initially announced his higher so-called “reciprocal” tariffs on April 2, but paused those for 90 days to allow countries time to negotiate, putting in place a 10% rate during that interval.
So far, the Trump administration has announced deals with the UK and Vietnam and agreed to a truce with China that saw the world’s two largest economies ease tit-for-tat tariffs.
Asked Thursday if more deals were on the way, Trump responded that “we have a couple of other deals, but you know, my inclination is to send a letter out and say what tariffs they are going to be paying.”
“It’s much easier,” he said.
Trump announced the Vietnam deal on Wednesday, saying that the US would place a 20% tariff on Vietnamese exports to the US and a 40% rate on goods deemed transshipped through the nation — a reference to the practice whereby components from China and possibly other nations are routed through third countries on their way to the US.
While the rates are lower than the 46% duty Trump imposed on Vietnam initially, they are higher than the universal 10% level. And many of the particulars of the deal are still unclear, with the White House yet to release a term sheet or publish any proclamation codifying the agreement.
Still, investors who have eagerly anticipated any deals between the US and trading partners were buoyed Wednesday by the Vietnam announcement, which saw share prices of American manufacturers with facilities in the country rise.
Many major trading partners, however, such as Japan, South Korea and the European Union, are still working to finalize deals. The president has expressed optimism about reaching an agreement with India but has spoken harshly about the prospects of an accord with Japan, casting Tokyo as a difficult negotiating partner. He intensified his criticism this week, saying that Japan should be forced to “pay 30%, 35% or whatever the number is that we determine.”
The president on Tuesday also said he was not considering delaying next week’s deadline. Asked about any potential extension of talks, US Treasury Secretary Scott Bessent said earlier Thursday that Trump would make the final call.
“We’re going to do what the president wants, and he’ll be the one to determine whether they’re negotiating in good faith,” Bessent said on CNBC when asked whether the deadline might be lengthened.
Source : Bloomberg
