US President Donald Trump has sent letters regarding tariffs to 12 countries. These letters specify different tax rates that could come into effect from August 1st. The names of these countries will be made public on Monday.
Tariff: US President Donald Trump has issued letters to 12 countries worldwide, providing information on new tariffs (taxes) to be imposed on these nations. This is his first set of letters, the details of which were announced to be made public on Monday, July 8th. Trump told reporters aboard Air Force One that he had signed some of the letters and that they would likely be released around 12 noon.
Although he did not specify the exact tariff amount for each country, he stated that these proposals are 'non-negotiable' and could only be accepted or rejected.
Why the delay in announcement?
According to a Reuters report, Trump had indicated that the first batch of letters would be sent on Friday. However, since there was a national holiday in the US that day, the process was postponed and will now be expedited on Monday.
Base tariff implemented in April
The Trump administration signaled in early April that it would impose tariffs on over 200 countries. Initially, this policy was postponed for 90 days and a 10 percent base tariff rate was set. This 90-day deadline is now ending on July 9th. During this period, the US initiated trade negotiations with several countries, while some cases are still pending.
Tariff rates may increase from August 1st
Trump has indicated that the new tariff rates could be implemented from August 1st. He mentioned that the tariff rates on some countries could go up to 70 percent. Subsequently, several trade negotiations may restart. Through the announcement of these letters, the US has sent clear signals to potential countries.
Which countries have reached a deal?
Under Trump's new tariff rules, two countries have so far completed trade deals with the US:
United Kingdom (UK): In May, an agreement was reached with the US at a base tariff rate of 10 percent. This provided duty exemptions on several American products.
Vietnam: The US has made a deal with Vietnam – reducing the old 46 percent tariff to 20 percent and eliminating duties on some products.
Current status of India-US talks
Trade talks between India and the US have been postponed for the time being. The Indian delegation has returned from the US. High-level discussions are stalled on automobiles and agricultural products. It is believed that a mini-deal may be possible, with agreements possible in some selected sectors, while further discussions on tariffs may take place in other sectors.
Trump's new tariff policy could create new ripples in world trade. The letters sent to 12 countries will clarify which countries will have to pay how much tariff and how the negotiations will proceed. When the new rates come into effect from August 1st, global supply chains, export-import strategies, and trade agreements will be directly impacted.
