Donald Trump has announced that his administration plans to initiate a series of letters to US trade partners starting on Monday, detailing new tariffs. This announcement comes amid confusion regarding the timeline for the implementation of these new rates. “It could be 12, maybe 15 letters,” the president shared with reporters, indicating a mix of letters and agreements that have been reached. As the previously announced 90-day pause on tariffs approaches its end on July 9, Trump faced questions about whether the new rates would take effect this week or on August 1, as some officials had suggested.
“No, they’re going to be tariffs, the tariffs, the tariffs are going to be, the tariffs,” began Trump, displaying some uncertainty. However, he confidently stated, “I think we’ll have most countries done by July 9, yeah. Either a letter or a deal.” Recognizing the confusion, his commerce secretary, Howard Lutnick, intervened, clarifying, “But they go into effect on August 1. Tariffs go into effect August 1, but the president is setting the rates and the deals right now.”
In April, Trump had announced a 10% base tariff rate on most countries, with additional duties reaching up to 50%. However, he later postponed the implementation date for all but the 10% until July 9. The newly set date of August 1 provides countries with an additional three-week reprieve, but it also introduces an extended period of uncertainty for importers regarding the upcoming tariffs.
As a result of this uncertainty, stock markets in Asia experienced declines on Monday. Japan’s Nikkei index dropped by 0.3%, while South Korean stocks fell by 0.7%. Additionally, MSCI’s broadest index of Asia-Pacific shares outside Japan eased by 0.1%.
In a subsequent update via his social media platform, Truth Social, Trump stated that the US would initiate the delivery of “TARIFF Letters, and/or Deals” starting at 12 PM ET on Monday. He emphasized, “Any Country aligning themselves with the Anti-American policies of BRICS will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy.” This remark references the BRICS nations, which include Brazil, Russia, India, China, and South Africa.
Following a joint leaders summit in Brazil on Sunday, BRICS leaders expressed “serious concerns about the rise of unilateral tariff measures,” which they believe threaten the global economy. Scott Bessent, the US treasury secretary, informed CNN on Sunday that significant announcements regarding trade agreements are anticipated in the coming days, noting that the European Union has made considerable progress in negotiations.
Bessent elaborated that Trump would be sending letters to 100 smaller countries with whom the US does not engage heavily in trade, notifying them of the higher tariff rates initially set on April 2 and later suspended until July 9. “President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along, then on August 1 you will boomerang back to your April 2 tariff level. So I think we’re going to see a lot of deals very quickly,” he stated.
Since taking office, Trump has instigated a global trade war that has disrupted financial markets and prompted policymakers to take measures to protect their economies, including negotiating deals with the US and other nations. Kevin Hassett, head of the White House National Economic Council, mentioned in an interview with CBS that there might be flexibility for countries actively engaged in negotiations. “There are deadlines, and there are things that are close, and so maybe things will push back past the deadline,” Hassett noted, adding that Trump would ultimately decide if any delay could occur.
