US President Donald Trump on May 16 announced that he would end bilateral tariff negotiations with most countries. Instead, Washington will send a letter announcing the new tax rate to about 150 countries in the coming weeks, according to The Guardian.
Speaking at a business roundtable in Saudi Arabia, Mr. Trump said that the US is no longer capable of meeting each country separately to negotiate, because the number of countries willing to negotiate is too large. We have up to 150 countries that want to reach an agreement. But I can't meet all those people," he said.
Instead of continuing individual negotiations as previously announced, Mr. Trump affirmed that the administration will unilaterally introduce new tariff conditions. These rates will be announced via a letter sent by Finance Minister Scott Bessent and Commerce Minister Howard Lutnick.
The White House has previously imposed a basic tax of 10% on all imported goods and added additions to duties for countries such as China, Mexico and Canada, citing trade imbalances.
The US president said the new tariffs would be very fair, and that countries would be specifically informed of how much they would have to pay to do business with the US. However, details of the content of the letter as well as specific tax rates have not been announced by the White House. It is also unclear whether countries are allowed to set a time frame or conditions to adjust these tariffs.
The new tax has prompted many major US retailers such as Walmart and Target to warn of increasing commodity prices due to rising import costs. However, Mr. Trump has denied these concerns, saying that any price increase will be small and businesses will adapt by changing the supply chain.
The unilateral decision to impose new tariffs instead of negotiations is seen as a tough move by the Trump administration in trade policy. The White House affirmed that this is an effective way to control trade imbalances and protect the economic interests of the United States in the context of a reshaping globalization.
