US President Donald Trump announced he had finalized correspondence to 12 nations detailing the different tariff rates applicable to goods they export to the United States, with the ‘take it or leave it’ proposals scheduled for dispatch on Monday.
Speaking to the media aboard Air Force One during his journey to New Jersey, Trump refrained from disclosing the names of the involved countries, indicating that this information would be revealed on Monday.
Earlier on Thursday, Trump had informed reporters that he anticipated sending out an initial set of letters on Friday, a national holiday in the United States, although the timeline has now been adjusted.
In a global trade conflict that has disrupted financial markets and prompted a rush among policymakers to protect their economies, Trump declared a 10% base tariff rate in April, with additional tariffs for most nations, some climbing as high as 50%.
Nevertheless, all tariffs beyond the 10% base rate were later put on hold for 90 days to facilitate further negotiations aimed at reaching agreements.
This period concludes on July 9; however, Trump stated early on Friday that the tariffs could potentially be even steeper—up to 70%—with many set to be implemented on August 1.
‘I signed several letters, and they’ll be dispatched on Monday, likely twelve,’ Trump declared when questioned about his tariff strategy. ‘Different amounts of money, different tariff levels.’
It remains unclear whether Thailand, which faces a 36% tariff, is included among the targeted countries.
The Thai delegation, led by Deputy Prime Minister Pichai Chunhavajira, returned home from Washington on Friday without achieving an agreement.
Mr. Pichai mentioned that the discussions had proceeded positively, and Thailand acquired ‘valuable perspectives’ that would inform a revised proposal. However, it is uncertain when or if discussions will resume, or if Thailand will receive an extension.
Initially, Trump and his senior advisors indicated they would commence negotiations with numerous countries concerning tariff rates, but the US president has grown disenchanted with that process following repeated obstacles with key trading partners, including Japan and the European Union (EU).
He briefly remarked on this late Friday, telling reporters, ‘The letters are preferable … much simpler to send a letter.’
He did not address his expectation that some broader trade agreements could be finalized before the July 9 deadline.
The shift in the White House’s approach underscores the difficulties in finalizing trade agreements encompassing tariffs and non-tariff obstacles, such as bans on agricultural imports, especially under a rushed timeline.
Most historical trade agreements have taken years of negotiations to conclude.
The only trade agreements secured thus far are with Britain, which reached a deal in May to maintain a 10% rate while obtaining favorable conditions for certain sectors, including automobiles and aircraft engines, and with Vietnam, reducing tariffs on various Vietnamese goods to 20% from the previously threatened 46%. Many US products are set to enter Vietnam without duties.
A deal anticipated with India has not come to fruition, and EU diplomats stated on Friday that they have not achieved a breakthrough in trade talks with the Trump administration, and may now pursue an extension of the current situation to avoid tariff increases.