The U.S. tariff strategy is taking a sharp turn as President Donald Trump prepares to send formal tariff letters to 12 countries next week. These letters, described as “take-it-or-leave-it” offers, outline the new tariff levels nations will face on exports to the United States. Trump signed the letters aboard Air Force One and confirmed they would be dispatched Monday, just days before the July 9 negotiation deadline expires.
Tariffs Could Rise as High as 70%
Trump warned that the tariff levels might significantly exceed the previously announced 10% base rate. In April, the White House unveiled a base tariff and proposed additional surcharges for most countries, some climbing as high as 50%. However, those extra tariffs were paused for 90 days to allow time for negotiations. That grace period ends July 9, and Trump indicated some tariffs might now spike up to 70% starting August 1.
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Negotiations Abandoned, Letters Preferred
Trump expressed frustration with traditional trade negotiations, calling the process slow and ineffective. “The letters are better — much easier to send a letter,” he remarked, signaling a pivot away from broad diplomatic talks. Earlier plans to negotiate with dozens of nations, including key partners like Japan and the EU, have largely failed.
Partial Agreements and Missed Deals
So far, the only completed deals are with Britain and Vietnam. Britain maintained a 10% tariff and secured favorable terms for autos and aircraft engines. Vietnam avoided a threatened 46% tariff, settling instead for 20% on many exports while allowing U.S. products duty-free access.
A much-anticipated agreement with India remains elusive, and European diplomats confirmed that talks with Washington have stalled. With limited progress, the EU may now push to maintain the current status quo to avoid new tariff penalties.
Trump’s latest move underscores a tougher U.S. trade posture, signaling that countries must accept steep tariffs unless they strike deals — and quickly.
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