Trump plans to send letters imposing '10-15%' tariffs on over 150 countries

President Donald Trump said to reporters on Wednesday (July 16, 2024) that he plans to send letters to more than 150 countries imposing a uniform tariff rate, including countries that are "not major players in trade" or have minimal trade with the US.

Trump later clarified in an interview with Real America’s Voice that the tariff would likely be set at "10 or 15%" and that the decision has yet to be finalised.

The president had initially planned for these tariffs to take effect on July 9, 2024, but extended the deadline to August 1, 2024, to allow for negotiations with various countries.

While Trump and his advisors had hoped to strike agreements with many nations, the president later referred to the tariff letters as a "deal" already made by him, indicating that he was unwilling to engage in extensive negotiations. However, he left room for countries to make deals to reduce the tariff rates.

These tariffs are similar to those announced in April, which were quickly suspended due to market volatility. However, the recent dispatch of tariff notices has brought more certainty to financial markets, surprising trading partners like the European Union (EU), which had hoped to finalise a preliminary deal with the US.

Trump expressed confidence that a deal with the EU could be reached, stating, "You know, we might make a deal with Europe. I’m very confident." As for a potential deal with Canada, which faces a 35% tariff, he said it was "too soon to say."

In a separate statement, Trump revealed that tariffs could also be imposed on pharmaceutical drugs by the end of the month. He further clarified that the tariffs would initially be set lower, giving companies a year to establish domestic factories before facing higher import duties. A similar approach would be applied to computer chips.

Regarding trade with India, Trump mentioned that the US is "very close" to reaching a deal with the country, and he also hinted at a possible agreement with the EU. However, he remained uncertain about the likelihood of a deal with Canada, stating, "Too soon to say."

EU trade chief Maros Sefcovic was scheduled to travel to Washington on Wednesday for tariff discussions, and an Indian trade delegation arrived earlier this week for fresh talks. Trump described the EU’s previous stance as "brutal" but noted that their attitude has now shifted, with both sides seeking a new deal, which he suggested would differ significantly from past agreements.