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Benzinga
Benzinga
Rounak Jain

Trump Says US Will Raise Tariffs To Up To 70% As July 9 Deadline Looms

Donald Trump Shutterstock

President Donald Trump has announced that his administration will begin informing trading partners about new tariffs on their exports starting this Friday.

What Happened: These tariffs are scheduled to take effect on August 1. Trump mentioned that approximately “10 or 12” letters will be sent out initially, with more to follow in the coming days, according to a Bloomberg report on Friday.

The president stated that by July 9, all countries would be notified of their new tariff levels, which could range from 10% to 70%. This move is part of Trump’s strategy to favor straightforward agreements over complex negotiations. Negotiations with countries such as Indonesia, South Korea, the European Union, and Switzerland are reaching critical stages.

Trump’s latest tariff threat is consistent with his previous ultimatums, suggesting that some countries may not have a say in their tariff levels. The highest proposed tariffs could exceed those initially outlined during his “Liberation Day” announcement in April, which ranged from 10% to 50%.

Trump emphasized that countries would start paying these tariffs on August 1, with revenue beginning to flow into the US. The impact of these tariffs on inflation has led some Federal Reserve officials to be cautious about cutting interest rates, despite pressure from Trump.

See Also: Elon Musk’s Tesla Is A ‘Multi-Trillion-Dollar Opportunity,’ But Short-Term Outlook Is ‘Shaky,’ Says Expert

While deals have been reached with the UK and Vietnam, other major trading partners like Japan and South Korea are still negotiating. Trump remains optimistic about reaching an agreement with India but has criticized Japan as a challenging partner.

Why It Matters: The announcement comes amid escalating trade tensions, notably with Japan. Trump recently threatened to impose tariffs of “30% or 35%” on Japanese exports if no agreement is reached by the July 9 deadline, a significant increase from the current 10% rate reported earlier this week.

A trade deal with Vietnam has been secured, imposing a 20% tariff on Vietnamese exports and a 40% tariff on goods transshipped through Vietnam, particularly targeting Chinese products. This deal grants the US tariff-free access to Vietnam’s domestic markets.

Furthermore, the Trump administration has reportedly scaled back its ambitions for comprehensive trade deals, opting for narrower agreements to avoid reimposing tariffs. This shift aims to reach agreements by the July 9 deadline, marking a departure from the initial plan to secure 90 trade deals during a 90-day pause in reciprocal tariffs.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo courtesy: Rawpixel.com / Shutterstock.com

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