- New rates effective from August 1
- Countries told to “Take it or leave it”
US President Donald Trump yesterday said he had signed letters to 12 countries outlining the various tariff levels they would face on goods they export to the United States, with the “Take it or leave it” offers to be sent out tomorrow.
In most cases, the new rates would go into effect from August 1, President Trump said. “They will range from maybe 60 percent or 70 percent tariffs to 10 percent and 20 percent tariffs, but they’re going to be starting to go out sometime tomorrow,” Trump said.
“We have done the final form, and it is basically going to explain what the countries are going to be paying in tariffs.”
Trump, speaking to reporters aboard the Air Force One as he travelled to New Jersey, declined to name the countries, saying that would be made public tomorrow.
Trump had earlier told reporters that he expected the first batch of letters to go out on Friday, a national holiday in the United States, though the date has now changed.
In a global trade war that has upended financial markets and set off a scramble among policymakers to guard their economies, Trump in April announced a 10 percent base tariff rate and additional amounts for most countries, some ranging as high as 50 percent.
However, all but the 10 percent base rate were subsequently suspended for 90 days to allow more time for negotiations to secure deals.
That period ends on July 9, although Trump early on Friday said the tariffs could be even higher — ranging up to 70 percent — with most set to go into effect from August 1.
Trump and his top aides initially said they would launch negotiations with scores of countries on tariff rates, but the US President has soured on that process after repeated setbacks with major trading partners, including Japan and the European Union.
He touched on that briefly late on Friday, telling reporters: “The letters are better … much easier to send a letter.”
He did not address his prediction that some broader trade agreements could be reached before the July 9 deadline.
The shift in the White House’s strategy reflects the challenges of completing trade agreements on everything from tariffs to non-tariff barriers such as bans on agricultural imports, and especially on an accelerated timeline.
Most past trade agreements have taken years of negotiations to complete.
The only trade agreements reached to date are with Britain, which reached a deal in May to keep a 10 percent rate and won preferential treatment for some sectors including autos and aircraft engines, and with Vietnam, cutting tariffs on many Vietnamese goods to 20 percent from his previously threatened 46 percent. Many US products would be allowed to enter Vietnam duty free. – CNBC, CNN
