U.S. to Set Flat Tariff Rates for 100 Countries, Trump Says
President Donald Trump announced on Thursday that the United States will start sending letters to foreign governments outlining their specific rates on U.S.-bound exports starting Friday. This signals a clear shift from traditional trade negotiations towards a one-size-fits-all approach. While speaking to a reporter, Trump said, “We have more than 170 countries, and how many deals can you make. They’re much more complicated.”
Instead of coming up with hundreds of individual trade agreements, which was once a goal championed by Trump’s economic team, the administration now plans to issue letters in batches of 10 countries at a time, clearing out their tariff plans that could be between 10% to 30%.
This move makes a departure from the administration’s earlier goal of 90 deals in 90 days, which raised a lot of questions among analysts who noted that comprehensive trade negotiations take years, not weeks.
Simplified Strategies, Same Goals
Trump indicated that while broad trade agreements may still be completed, like the recently finalized deal with Vietnam, most countries will get a present tariff rate without protracted negotiations. Originally, the Trump administration’s tariff framework outlined 10% duties only for 123 countries, including small island territories and minor trading partners. However, the list now includes fewer countries at the base 10% level, while some economies are seeing higher rates.
Tariff Rates of Different Countries
Some trading partners like the European Union (20%), India (26%), and Japan (24%) are in talks to get better treatment but remain subject to the administration’s steeper tariffs until final agreements are reached. Others, like the United Kingdom, have already finalized keeping a 10% rate and earning some relaxations for automobiles and aircraft engines.
Meanwhile, other countries that have not entered the negotiations may face even harsher duties. These include Lesotho (50%), Madagascar (47%), and Thailand (34%), seeing the highest first tariffs under the new system.
In an example of the administration’s new direction, Trump, on Wednesday, made a trade deal with Vietnam that lowers tariffs on Vietnamese goods to 20% which was initially 46%.
July 9 deadline
The rollout of new letters and any last-minute deals is expected to begin by July 9, which is a self-imposed deadline after which temporary 10% rates could rise dramatically for countries without negotiated agreements. The deadline adds urgency to what has become a fast-moving and unpredictable phase of Trump’s trade agenda. As global markets digest the implications, investors and foreign governments are waiting to see who makes the cut.
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