President Trump declared that beginning Friday, his administration will initiate the implementation of “reciprocal” tariffs on nations that have not finalized a tentative trade agreement with the United States, with some of the newly imposed tariffs potentially reaching as high as “60 or 70%.”
“We will commence sending letters to various countries starting [Friday]. We anticipate dispatching around 10 or 12 letters,” the president informed reporters after midnight upon his return from a speech at the Iowa State Fairgrounds, as reported by the New York Post.
“I believe that by the 9th [of July], they will be entirely addressed, and the tariffs will vary in value from approximately 60 or 70% to 10 and 20%,” he further stated.
The elevated rates indicate that Trump may increase tariffs on specific countries beyond the levels specified in his April 2 “Liberation Day” announcement, which established a new baseline tariff of 10%—roughly three times the previous rate—and imposed significant duties on countries with considerable trade imbalances with the U.S.
The highest previously declared “reciprocal” tariffs—linked to each nation’s trade deficit with the U.S.—were 49% for Cambodia, a key producer of clothing and footwear; 48% for neighboring Laos; and 47% for Madagascar, the leading global exporter of vanilla.
“We have finalized the form, and it will essentially outline what the countries will be required to pay in tariffs,” Trump told reporters early on Friday.
“It represents a substantial amount of money for the country, but we are offering them a deal. … I do not wish to overextend it; we aim to keep it quite reasonable,” he remarked, according to The Post.
Trump indicated that he plans to send up to a dozen letters to countries each day until the Wednesday deadline he established for negotiations.
“As we approach the smaller nations, we will largely maintain the existing tariffs,” he stated. “They will begin to incur charges on August 1. The funds will start flowing into the United States on August 1 in nearly all instances.”
It is still uncertain which nations will face tariffs in the range of 60 to 70%, but Trump’s renewed assertive trade discourse arises amidst a series of robust economic indicators, as noted by The Post.
Job growth in June once again surpassed expectations, inflation remained close to the Federal Reserve’s 2% target at 2.4% in May, and major stock market indices achieved record highs in the past week.
Critics of Trump’s confrontational trade approach caution that it may result in significant price hikes for consumer goods imported from abroad, according to the outlet.
Trump has already established tentative trade agreements with China, the UK, and Vietnam, along with a “roadmap” deal with India, and has secured considerable trade concessions from Israel and Taiwan. However, numerous countries facing impending tariffs—including crucial partners like Japan and the European Union—have yet to finalize an agreement.
Trump has adopted a skeptical stance regarding trade discussions with Tokyo, which currently endures a 24% tariff. Meanwhile, the European Union is confronted with a potential 50% rate—more than double the initial 20%—after Trump increased the figure in retaliation for the bloc’s proposed digital tax aimed at major U.S. tech firms.
Three preliminary trade agreements have been announced, but they only partially mitigate the effects of the new tariffs.
Under the proposed agreement with the UK, Trump’s 10% baseline tariff on most goods would persist, but the majority of British-made cars, steel, and aluminum would be exempt from an additional 25% increase. In return, the UK has reportedly consented to broaden access to its market for U.S. meat and ethanol.
The agreement with China rolled back some of the retaliatory tariffs while allowing for the possibility of a more comprehensive deal in the future. Trump mentioned that Beijing also pledged to open its markets to a greater volume of American exports.
Vietnam, which was previously confronted with a significant 46% tariff, will now be subjected to a lower yet still considerable 20% rate—escalating to 40% for products that are routed through third-party nations like China.
The majority of exports from Canada and Mexico continue to be safeguarded under the USMCA, providing them protection from the wider trade conflict.
Nevertheless, in March, Trump enacted 25% tariffs on certain goods that fall outside of that agreement as a means to compel both nations to address fentanyl trafficking and illegal immigration.