Trump Announces New Tariff Rates

By Andrea Shalal and David Lawder

WASHINGTON (Reuters) – President Donald Trump announced that Washington will begin sending letters to countries, starting Friday, detailing the tariff rates they will face on imports to the United States. This marks a shift from previous intentions to negotiate numerous individual deals.

Trump acknowledged the difficulty of negotiating with over 170 nations, stating that letters will be sent to ten countries at a time, specifying tariff rates ranging from 20% to 30%.

> “We have more than 170 countries, and how many deals can you make? They’re very much more complicated,” Trump said before leaving for Iowa.

The Republican president anticipated a few more comprehensive agreements following the recent announcement of a trade deal with Vietnam. However, he indicated a preference for informing most countries of a specific tariff rate instead of engaging in detailed negotiations.

Trump’s remarks highlight the challenges of finalizing trade agreements concerning tariffs and non-tariff barriers, such as agricultural import bans.

In April, top Trump aides mentioned plans to negotiate 90 deals in 90 days, an ambitious target met with some skepticism by trade experts who understand the complexities of trade negotiations.

Treasury Secretary Scott Bessent told Bloomberg Television that approximately 100 countries would likely incur a reciprocal tariff rate of 10% with expectations of numerous trade deals announced by a July 9 deadline, beyond which tariffs could significantly increase.

If 10% tariffs were implemented for 100 countries, it would be fewer than initially planned by the Trump administration, which had originally identified 123 jurisdictions for a 10% tariff rate, primarily including small countries and territories like Australia’s uninhabited Heard and McDonald Islands.

On April 2, Trump’s declaration of broad reciprocal tariff rates of 10% to 50% caused a market reaction, although he later temporarily lowered the tariff rate for most countries to 10% to allow for negotiations until July 9.

Many countries initially facing a 10% duty have not engaged in negotiations with the Trump administration, aside from Britain, which reached a deal in May that maintained a 10% rate and secured preferential treatment in certain sectors like autos and aircraft engines.

Major trading partners engaged in negotiations face much higher tariffs, including 20% for the European Union, 26% for India, and 24% for Japan. Other countries lacking trade discussions with the Trump administration are confronted with even greater reciprocal tariffs, such as 50% for Lesotho, 47% for Madagascar, and 36% for Thailand.

On Wednesday, Trump announced a deal with Vietnam that reduces U.S. tariffs on many Vietnamese goods to 20%, down from a previously threatened 46%, and many U.S. products are to be allowed entry into Vietnam duty-free.