US President Donald Trump has just announced a series of letters to his trading partners, clarifying the import tariffs that Washington plans to apply from August 1. The six countries receiving the letter include the Philippines, Brunei, Algeria, Libya, Iraq and Moldova, with tariffs ranging from 20 to 30%.
This move is the next step in Mr. Trump's strategy to promote a series of new trade deals. He had previously sent similar letters earlier in the week, announcing the tax rate close to what was announced in April, although some countries this time enjoyed a significantly lower rate.
In April, Mr. Trump imposed a 10% tax on most of his trading partners, and announced that he would increase taxes on many economies. The deadline for higher taxes to take effect was set for July 10, but was later postponed to August 1. During this time, many countries began receiving letters clarifying new US tariffs on their goods.
The content of these letters is similar to previous letters, arguing that trade relations between the US and other countries are still "not mutual". Mr. Trump encouraged countries to shift production activities to the US to avoid being taxed, and warned that there would be more measures if countries retaliated.
To date, 20 countries have received letters from the US president, including important allies such as Japan, South Korea, as well as other Asian countries such as Indonesia, Bangladesh and Thailand. In the letter, Mr. Trump left open the possibility of adjusting the stance if countries change their trade policies.
Observers are currently closely monitoring the negotiations between the US and the European Union (EU), a major partner that has not yet received an official letter. President Trump revealed that his administration could send a letter to the EU in "the next two days," with a new tariff for the bloc. He said the EU leaders are in a very good attitude in the current dialogue.
An EU spokesperson confirmed that the bloc wants to reach an agreement with the US "in the coming days" and is ready to accept an agreement in principle.
According to EU diplomats, the European Commission could continue negotiations until before August 1, expecting the US to maintain a basic tax rate of 10% on EU goods, and exempt essential industries such as aircraft, strong wine and cosmetics.
In addition to imposing national tariffs, President Trump is also pushing industry-based tariffs on steel, aluminum and automobiles. On July 9, he announced a plan to tax copper at 50% and up to 200% on pharmaceuticals, although manufacturers will have time to shift operations to the US.
