Trump Announces New Tariffs Up To 70% On Imports From 10 Countries

U.S. President Donald Trump has announced that the United States will begin sending out letters to its trading partners, detailing the new tariff rates that will take effect starting August 1. These letters, which will be dispatched from July 4, outline the unilateral tariff rates that various countries will face on their exports to the U.S. The tariff rates will range from 10% to 70%, with the first batch of letters covering approximately 10 to 12 countries. Trump has set a deadline of July 9 for concluding trade negotiations and ending the current tariff pause, which has been in effect for the past 90 days.

The move comes as a significant escalation in the ongoing trade tensions, with the U.S. aiming to enforce higher tariffs on a wide range of imports. The administration has been focused on securing trade deals, but so far, only three agreements have been finalized. Treasury Secretary Scott Bessent has indicated that around 100 trading partners are likely to face a minimum "reciprocal" rate of 10% starting next week. He also anticipates a surge in deal-making efforts before the July 9 deadline.

The U.S. has been engaged in various trade negotiations with key partners. With China, the U.S. has eased export restrictions on chip design software and ethane, signaling a potential easing of trade tensions. The U.S. has also reached a trade deal with Vietnam, which will see a 20% tariff on Vietnamese imports, lower than the previously threatened 46%. Additionally, the U.S. has threatened higher tariffs on Japan, with rates potentially reaching 30% to 35%. The European Union has signaled its willingness to accept a 10% universal tariff on many of its exports but is seeking exemptions for certain sectors. Canada has scrapped its digital services tax, and trade talks between the two countries have resumed, with a deal expected by mid-July.

The administration's decision to impose higher tariffs is part of a broader strategy to pressure trading partners into negotiating more favorable terms. The move is expected to have significant implications for global trade, as countries scramble to find alternative trade arrangements and negotiate deals before the deadline. The U.S. government's actions reflect a determination to use tariffs as a lever in trade negotiations, aiming to secure better terms for American industries and workers.

Twelve countries have responded to this matter. The U.S. has been engaged in various trade negotiations with key partners. The U.S. has also reached a trade deal with Vietnam, which will see a 20% tariff on Vietnamese imports, lower than the previously threatened 46%. Additionally, the U.S. has threatened higher tariffs on Japan, with rates potentially reaching 30% to 35%. The European Union has signaled its willingness to accept a 10% universal tariff on many of its exports but is seeking exemptions for certain sectors. Canada has scrapped its digital services tax, and trade talks between the two countries have resumed, with a deal expected by mid-July.