Trump likely to start telling new tariff rates on Friday as deadline nears

US President Donald Trump said on Thursday (local time) that his administration may begin sending letters to trading partners as early as Friday, mentioning unilateral tariff rates ahead of the July 9 deadline.

According to a Bloomberg report, Trump made this announcement while addressing reporters before leaving Washington for Iowa. He said, “We’re probably going to be sending some letters out, starting probably tomorrow, maybe 10 a day to various countries saying what they’re going to pay to do business with the US.”

The Trump administration announced sweeping, reciprocal tariffs on over 100 countries, including China and India, on April 2, a move that rattled the markets globally. A week later, Trump announced a 90-day pause on these tariffs, allowing the countries impacted to negotiate deals with the US. As the deadline ends on July 9, several countries have been trying to finalise a deal with the US; however, only three have been able to secure a deal so far – the UK, China, and Vietnam.

Donald Trump has repeatedly warned that if countries fail to secure a deal with the US before the deadline, he would impose tariffs on them.

When asked whether additional agreements were expected, Trump responded, “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.”

Tariffs target transshipped goods

The US secured a deal with Vietnam on Wednesday. Trump announced that the US would place a 20 per cent tariff on Vietnamese exports to the US and a 40 per cent rate on goods deemed transshipped through the nation— a reference to the practice of routing components from China and potentially other countries through third-party nations before they reach the US.

The report added that many major trading partners, including Japan, South Korea, and the European Union, have yet to finalise a deal with the US. While Trump has expressed optimism about reaching an agreement with India, he criticised the prospects of an accord with Japan, terming Tokyo a difficult negotiating partner. Intensifying his criticism against Japan this week, Trump said that Japan should be forced to “pay 30 per cent, 35 per cent or whatever the number is that we determine”.

India-US trade deal

The announcement comes at a time when India has been trying to finalise a deal with the US. It was earlier reported that a deal with India can be finalised by this week. White House Press Secretary Karoline Leavitt also reiterated the same. Speaking to ANI, she said, “Yes, the President said that last week [that the US and India are very close to a trade deal], and it remains true. I just spoke to our Secretary of Commerce about it. He was in the Oval Office with the President. They are finalising these agreements, and you’ll hear from the President and his trade team very soon when it comes to India.”

While the Trump administration previously claimed that the deadline could likely be extended, Trump clarified on Tuesday (local time) that he was not considering extending the deadline beyond July 9.