President Donald Trump said that his administration will begin notifying trading partners of a sweeping new round of US tariffs on their exports, with duties set to take effect August 1.
The move marks a major escalation in his push for what he calls “reciprocal” trade and comes just five days ahead of a self-imposed July 9 deadline for countries to strike deals with the US.
Trump told reporters that “10 or 12” letters will be sent Friday, with additional notices expected in the following days. “By the ninth, they’ll be fully covered,” he said, referring to the expiration of the 90-day window he provided when initially announcing the tariff plan on April 2. The new tariffs could range from 10% to 70%, surpassing his earlier maximum of 50%.
Trump pushes simple tariff deals as deadline pressures mount
Trump reaffirmed his preference for direct tariff implementation over drawn-out negotiations, saying, “It’s much easier. I’d rather just do a simple deal where you can maintain it and control it.”
He confirmed that payments from the tariffs would start flowing into the US beginning August 1. While importers or intermediaries pay tariffs, the ultimate cost is often passed to consumers or absorbed in profit margins.
As the deadline nears, talks with key economies — including South Korea, Indonesia, the EU, and Switzerland — are in a critical phase. Bloomberg Economics estimates the average tariff on US imports could rise to 20% from just 3% before Trump took office.
So far, only the UK and Vietnam have finalized agreements. A deal with China has resulted in a truce, easing tit-for-tat measures and loosening export restrictions.
This week, Trump unveiled the Vietnam deal, which imposes a 20% tariff on Vietnamese exports and a 40% tariff on transshipped goods. Though lower than the initial 46%, the rates exceed the interim 10%. Vietnam, however, says negotiations are still ongoing.
Global trade partners scramble for last-minute deals as tariff deadline looms
Indonesia expressed optimism about finalizing a bold trade pact covering minerals, energy, and defense cooperation. Cambodia announced it had agreed on a reciprocal trade framework, with details to be made public soon. Trump had threatened Cambodia with a 49% tariff, one of the steepest.
Japan, South Korea, and EU members are still finalizing accords. Some European automakers are pushing for tariff relief in exchange for increased US investment.
South Korea’s top trade envoy is expected to visit Washington this weekend with fresh proposals in a last-minute attempt to avoid new tariffs.
Trump has remained optimistic about reaching a deal with India but has sharply criticized Japan, describing it as a tough negotiator. This week, he said Japan might face tariffs as high as 35%.
Despite growing concerns, Trump insisted there would be no delay to the deadline. Treasury Secretary Scott Bessent confirmed Thursday that the president would decide whether countries negotiated in good faith and whether any extensions were warranted.
“We’re going to do what the president wants,” Bessent said on CNBC.
Markets slide, and fed holds firm as Trump’s tariff threats rattle the global economy
Global markets reacted swiftly. Stocks in Asia and Europe dropped, and the US dollar weakened. American equity and bond markets were closed for the Fourth of July holiday.
Federal Reserve officials remain cautious, with some warning that increased tariffs could stoke inflation — a concern that’s kept interest rate cuts off the table despite pressure from the White House.
As Trump moves to reshape global trade through unilateral action, trading partners face a stark choice: strike a deal now or pay the price come August.
