President Donald Trump has said that he has signed letters to 12 countries, detailing the tariff rates they would face on exports to the United States.
What Happened: According to a Reuters report, these “take it or leave it” offers are set to be dispatched on Monday. Trump did not disclose the countries involved.
The U.S. President had previously indicated that the letters would be dispatched on Friday, a national holiday in the U.S. However, the date has now been postponed. The letters outline the tariff levels that would apply to the countries’ exports to the U.S.
Trump announced a 10% base tariff rate in April, with additional rates for most countries, some as high as 50%. However, all rates except the 10% base were suspended for 90 days to allow for further negotiations.
This period ends on July 9, with Trump suggesting that the tariffs could be increased to as high as 70%, with most taking effect on August 1.
Trump and his administration initially planned to negotiate tariff rates with numerous countries, but have since shifted to sending out letters, a process the President finds easier. The only trade deals reached so far are with the U.K. and Vietnam.
Why It Matters: This move by the Trump administration is part of a larger strategy to favor straightforward agreements over complex negotiations.
Trump had earlier announced that the U.S. would raise tariffs to up to 70% as the July 9 deadline approached. Negotiations with countries such as Indonesia, South Korea, the European Union, and Switzerland were reaching critical stages.
The U.S. stock market has been reacting to these developments, with the announcement of a trade deal with Vietnam leading to a rise in stock futures.
The Trump administration’s shift in strategy has also been evident in its decision to favor narrower agreements to avoid the reimposition of U.S. tariffs.
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