Trump plans to start notifying countries of U.S. tariffs up to 70%

Trump told reporters that about “10 or 12” letters would go out Friday, with additional letters coming “over the next few days.”

“By the ninth they’ll be fully covered,” Trump added, referring to a July 9 deadline he initially set for countries to reach deals with the US to avoid higher import duties he has threatened. “They’ll range in value from maybe 60 or 70% tariffs to 10 and 20% tariffs,” he added.

US talks with economies from Indonesia and South Korea to the European Union and Switzerland are reaching critical stages, where the most contentious issues are hammered out. Trump’s latest threat, which fits his pattern of issuing ultimatums to break any impasses, aligns with earlier statements that some nations won’t have a say in their tariff level.

The top tier of his new tariff range, if formalized, would be higher than any of the levies the president initially outlined during his “Liberation Day” rollout in early April. Those varied from a 10% baseline tariff on most economies up to a maximum of 50%. Trump didn’t elaborate on which countries would get the tariffs or whether that meant certain goods would be taxed at a higher rate than others.

Trump said that countries would “start to pay on Aug. 1. The money will start going to come into the United States on August 1.” Tariffs are typically paid by the importer, or an intermediary acting on the importer’s behalf. But often it’s profit margins or the end consumer that ultimately absorb much of the cost.

Stocks in Asia and Europe dropped along with the dollar. US equity and Treasury markets closed for the Fourth of July holiday.

The lagged effect of tariffs on inflation has some Federal Reserve officials wary of cutting interest rates. The Fed has held off on lowering rates this year — despite intense pressure from Trump — in part to determine whether tariff-driven price hikes might evolve into more persistent cost-of-living pressures.

Trump has long threatened that if countries fail to reach deals with the US before next week’s deadline, he would simply impose rates on them, raising the stakes for trading partners that have rushed to secure agreements with his administration.

He initially announced his higher so-called “reciprocal” tariffs on April 2, but paused those for 90 days to allow countries time to negotiate, putting in place a 10% rate during that interval.

Bloomberg Economics estimates that if all reciprocal tariffs are raised to their threatened level on July 9, average duties on all US imports could climb to around 20% from close to 3% before Trump’s inauguration in January. That would add to growth and inflation risks for the US economy.

So far, the Trump administration has announced deals with the UK and Vietnam and agreed to truces with China that saw the world’s two largest economies ease tit-for-tat tariffs and lower export controls. 

Asked Thursday if more deals were on the way, Trump responded that “we have a couple of other deals, but you know, my inclination is to send a letter out and say what tariffs they are going to be paying.”

“It’s much easier,” he said. “I’d rather just do a simple deal where you can maintain it and control it.”

Trump announced the Vietnam deal on Wednesday, saying that the US would place a 20% tariff on Vietnamese exports to the US and a 40% rate on goods deemed transshipped through the nation — a reference to the practice whereby components from China and possibly other nations are routed through third countries on their way to the US.

Vietnam Deal

While the rates are lower than the 46% duty Trump imposed on Vietnam initially, they are higher than the universal 10% level. And many of the particulars of the deal are still unclear, with the White House yet to release a term sheet or publish any proclamation codifying the agreement.

After Trump’s announcement, Vietnam said the negotiations were still ongoing.

Indonesia is confident it is close to securing a “bold” trade deal with the US that will span critical minerals, energy, defense cooperation and market access ahead of the looming tariff deadline, according to the nation’s chief negotiator on Friday.

Many major trading partners, however, such as Japan, South Korea and the European Union, are still working to finalize their accords. 

South Korea’s top trade official will visit the US this weekend with fresh proposals in a last-minute bid for a reprieve before higher tariffs are scheduled to kick in. 

The US president has expressed optimism about reaching an agreement with India but has spoken harshly about the prospects of an accord with Japan, casting Tokyo as a difficult negotiating partner. He intensified his criticism this week, saying that Japan should be forced to “pay 30%, 35% or whatever the number is that we determine.”

Trump on Tuesday also said he was not considering delaying next week’s deadline. Asked about any potential extension of talks, US Treasury Secretary Scott Bessent said earlier Thursday that Trump would make the final call.

“We’re going to do what the president wants, and he’ll be the one to determine whether they’re negotiating in good faith,” Bessent said on CNBC when asked whether the deadline might be lengthened.