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The White House is set to make a significant move on Friday by notifying trade partners of new tariff rates on their exports to the US. President Donald Trump has announced this decision ahead of his upcoming July 9 deadline to finalize new trade deals. Trump indicated that he plans to send out “10 or 12” letters to trade partners on Friday, with more to follow in the coming days to ensure all partners are informed before the deadline.
According to Trump, the new tariffs will vary in value, ranging from 60 to 70 percent for some countries, while others may face tariffs as low as 10 to 20 percent. This announcement raises the possibility of some countries facing even higher levies than those introduced on “liberation day” back in April.
Initially, Trump had anticipated that major trade partners would quickly negotiate deals in response to the hefty tariffs imposed on “liberation day”. However, with the deadline fast approaching, Trump seems to be growing impatient. He mentioned that while a few deals are in progress, others may face unilateral treatment through the issuance of tariff notification letters.
It remains unclear whether the new tariffs will be blanket rates applied to all goods or if they will target specific products. Notably, tariffs of 25 and 50 percent are already in place for automobiles and steel, respectively.
The new tariff rates are slated to take effect on August 1, with the US beginning to collect revenue from that date onwards. Recent data shows that US tariff revenues surged to a record $24.2 billion in May, marking a substantial increase from previous months.
Following the introduction of reciprocal tariffs on “liberation day”, only a few countries, such as the UK and Vietnam, have reached agreements in principle. Most countries have been subject to a flat 10 percent baseline tariff during the negotiation period. Key allies like Japan, which faced a 24 percent tariff in April, have been slow to finalize deals, prompting Trump to threaten additional tariffs of 30 to 35 percent.
The “liberation day” tariffs were based on each country’s trade deficit with the US, with major manufacturing hubs like Vietnam being heavily impacted. Trump recently announced that Vietnam will now face a flat 20 percent tariff on its goods, while products being shipped through Vietnam will incur a 40 percent levy.
As the deadline approaches, the trade landscape is poised for further changes, with implications for businesses and economies worldwide. Stay informed with the White House Watch newsletter for in-depth analysis and updates on Trump’s trade policies.
