After the US Congress passed the spending bill, President Donald Trump is turning his focus to implementing the widely-feared import tariffs.
With what he called the ‘Big Beautiful Bill’ on his table to sign, Trump needs money to spend, and the tariffs could be one answer to where it will come from.
Tariffs to start from August 1 as July 9 deadline not to be extended
The often-unpredictable American president had said earlier that the July 9 pause on tarrifs will not be extended. Several countries incuding India have been negotiating an ease on tariffs or trade deals with the US ahead of the August 1 deadline. But in all likelihood, the tariffs will be implemented in some form or the other.
’10-12 countries’ to get letters Friday: Trump on tariffs
On Thursday (July 3), Trump said his administration will start sending out letters to trading partner countries starting Friday. He said countries will have to start paying from August 1.
“10 or 12” countries will get the letters on Friday, he said, with additional letters “over the next few days.”
The tariffs will range from 10 per cent to 70 per cent for different countries, he said.
“They’ll be fully covered and they’ll range in value from maybe 60 or 70 per cent tariffs to 10 and 20 per cent tariffs,” Trump told reporters. “I think by the ninth [July 9] they’ll be fully covered.”
“The money will start to come into the United States on August 1,” Trump added.
Some trade deals in place as July 9 Trump tariff deadline looms
Trump has not yet specified which countries would face the highest tariffs, or which specific goods were to be targeted.
In fact, the top rate of 70 per cent is even higher than what Trump had outlined on April 2, which he called “Liberation Day”.
China, one of the main targets of Trump’s tariff ire, has reached an initial agreement with the US on the tariffs. The UK and Vietnam are the only other countries that have such deals in place. For Vietnam, the deal is for a 20 per cent tariff on exports and a 40 tariff on transshipped goods.
Talks with Canada were canceled over differences over its move to tax US tech companies. WIth India, trade negotiations are ongoing and a mini trade deal is expected any time before July 9 deadline.
Trump seems determined to roll out tariffs
“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,” Trump said.
This in all likelihood means that the tariff wars are coming, and was not an empty threat of Trump.