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On Friday, the White House is set to announce new tariff rates on exports to the US, as President Donald Trump approaches his July 9 deadline for finalizing new trade deals.
Trump revealed that “10 or 12” letters will be sent out on Friday to notify trade partners of the new tariffs, with more to follow in the coming days. The tariffs are expected to range from 10 to 70 per cent, potentially exceeding the rates set on “liberation day” in April.
The president’s initial optimism for swift deals with major trade partners seems to have waned, with Trump indicating that unilateral actions may be necessary. Trump emphasized that some countries may face higher levies and that the new rates will take effect on August 1.
Since imposing reciprocal tariffs on trade partners, US tariff revenues have seen a significant increase, reaching a record $24.2 billion in May. Despite pressure from bond markets, only a few countries, including the UK and Vietnam, have reached agreements with the US.
As the July 9 deadline approaches, negotiations with key partners like Japan remain unresolved. Trump has threatened additional tariffs on Tokyo if a deal cannot be reached. The “liberation day” tariffs were based on each country’s trade deficit with the US, impacting major manufacturing countries like Vietnam.
In response to the tariffs, Vietnam will now face a flat 20 per cent levy on its goods, with a higher tariff of 40 per cent on goods being shipped through the country. The ongoing tariff negotiations reflect the complexities of global trade relations under the Trump administration.