U.S. President Donald Trump has announced that his administration will begin sending out letters to foreign governments, detailing new tariff rates set to take effect on August 1. The move comes as part of his ongoing strategy to reshape U.S. trade relationships and strengthen domestic manufacturing.
Speaking to reporters on Thursday, Trump revealed that between 10 to 12 letters will be sent out on Friday, with additional notifications to follow in the coming days. The tariffs are expected to range from 10% to as high as 70%, significantly surpassing the 50% ceiling he had previously suggested.
“We’re going to be sending some letters out, starting probably tomorrow,” Trump said. “My inclination is to send a letter out and say what tariff they’re going to be paying. It’s just much easier.”
While he did not disclose the specific countries or goods that will be targeted, the implications are wide-reaching. Nations like Japan, the European Union, and the United Kingdom are all bracing for potential tariff hikes. Japan could face tariffs of up to 35%, while EU goods might be hit with duties as high as 50%. The UK, which has a partial trade agreement with the U.S. covering goods such as cars, beef, and bioethanol but not steel could also be impacted.
The stated goal of the tariffs is twofold: to increase government revenue and to make foreign goods more expensive, thereby encouraging Americans to buy domestic products. However, critics warn that the costs of these tariffs are typically absorbed by U.S. importers and ultimately passed on to consumers.
The new tariffs are tied to a July 9 deadline that Trump set for trade negotiations. Countries that fail to reach a deal with the U.S. by then risk facing the full brunt of the increased duties.
As Trump continues to position trade as a central issue ahead of the 2024 election, global markets and international partners will be watching closely to see how these measures affect both diplomatic relations and economic performance.
