Game of Tariffs Begins! Trump Will Announce New Tariffs to the World
US President Donald Trump announced that his administration will begin sending letters to trading partners starting Friday (4/7), to inform them of new tariffs that will take effect on August 1. The letter is part of the negotiation deadline that has been set until July 9. Trump said there will be around 10-12 letters sent on the first day, and the rest will follow in the next few days.
The new tariffs planned to be imposed vary from 10% to 70%, depending on the country and goods involved. Although he did not specify which countries would be affected, Trump emphasized that these countries would start "paying" on August 1. Previously, the tariff was only imposed at 10% during the 90-day negotiation period since early April.
Countries such as Indonesia, South Korea, the European Union, and Switzerland are now in the final stages of talks with the US. Trump is known to prefer a direct approach through tariff announcements, rather than a long, complex negotiation process. In some cases, such as Vietnam and the UK, agreements have been reached, including the imposition of 20-40% tariffs on Vietnamese exports.
Trump's statement immediately impacted the market. Asian and European stocks weakened, while the US dollar was also under pressure. On the other hand, the US market was closed due to the Independence Day holiday. The effects of these tariffs are feared to increase the burden of inflation in the US, making the Federal Reserve (The Fed) more careful in cutting interest rates.
If all the new tariffs are imposed on July 9, the average import duty on US goods could jump from 3% to 20%. This spike risks slowing economic growth and driving inflation. Bloomberg Economics noted that this could add pressure to consumers and businesses, as tariff costs are often passed on to end buyers.
Source: (ayu-newsmaker)
