Trump: The United States began sending letters to countries as early as Friday to set new tariff rates by July 9

Source: Wall Street CN

The Trump administration is preparing to send notifications of unilateral tariff rates to trading partners, marking a new hardline phase in its trade policy. This move will be implemented before the July 9 negotiation deadline, putting direct pressure on countries that have not yet reached an agreement.

On July 3, according to a report by Global Times, European Commission President Ursula von der Leyen stated that the EU aims to reach an agreement by July 9 and is "ready to reach a principled agreement with the United States" on tariffs. However, if the negotiations fail, the EU will resolutely take countermeasures to protect the European economy.

On the same day, according to media reports, US President Trump said that the government may start sending letters to trading partners as early as Friday, unilaterally setting tariff rates before the July 9 negotiation deadline. Treasury Secretary Bescent revealed that about 100 countries may face a 10% reciprocal tariff rate.

Considering the complexity of negotiating with more than 170 countries, Trump prefers to directly notify most countries of specific tariff rates, skipping the detailed negotiation process. Trump said:

"We have over 170 countries. How many agreements can you reach? These (negotiations) are much more complicated. We may send out some letters, possibly starting tomorrow, sending letters to 10 countries a day, listing tariff rates of 20% to 30%."

Analysts said Trump's statement has significantly heightened trade tensions, adding urgency to trading partners scrambling to reach an agreement with the US government.

Currently, major trading partners participating in the negotiations face higher tariff rates, including 20% for the EU, 26% for India, and 24% for Japan. Other countries that have not conducted trade negotiations with the Trump administration face higher reciprocal tariffs, including 50% for the small mountainous country Lesotho, 47% for Madagascar, and 36% for Thailand.

100 countries face 10% reciprocal tariffs

According to media reports, US Treasury Secretary Bescent said in a television interview that about 100 countries may face a 10% reciprocal tariff rate, and predicted that there will be a "boom" in the announcement of trade agreements before the July 9 deadline.

When asked whether to extend the deadline, Bescent pointed out that the final decision will be made by Trump:

"We will do as Trump wishes, and he will decide whether the other party is negotiating in good faith."

Media pointed out that if 10% tariffs are imposed on 100 countries, this number will be less than the Trump administration's initial idea.

The original US reciprocal tariff list showed that 123 jurisdictions would face a 10% tariff rate, mainly small countries and some territories, such as Australia's uninhabited Heard Island and McDonald Islands.

Most countries with an initial tariff rate of 10% have not conducted any negotiations with the Trump administration, with the UK being an exception. The UK reached an agreement in May to maintain the 10% rate and obtained preferential treatment in some industries such as automobiles and aircraft engines.

"Ultimatum" approaching

US President first announced the increase of so-called "reciprocal" tariffs on April 2, but suspended the implementation for 90 days to give countries time for negotiations, during which a 10% rate was implemented.

The US has now announced agreements with the UK and Vietnam. As previously reported by Wall Street CN, the Vietnam agreement was announced on Wednesday, imposing a 20% tariff on Vietnamese goods exported to the US and a 40% tariff on goods deemed to be transshipped. Although the tariff rate in the Vietnam agreement is lower than the 46% initially proposed by Trump for the country, it is still higher than the general 10% level.

The White House has not released a list of agreement terms or an official announcement, and many details of the agreement remain unclear. Investors reacted positively to the news of the US-Vietnam agreement, with shares of US manufacturers with factories in Vietnam rising on Wednesday.

Major trading partners such as Japan, South Korea, and the EU are still working to finalize agreements. Trump expressed optimism about reaching an agreement with India but spoke harshly about the prospects of a Japan agreement.

As reported by Wall Street CN, Trump once called Tokyo a difficult negotiating partner, threatening to impose harsher punitive measures, including restrictions on automobile export quotas. Trump also stated that he may impose 30-35% tariffs on Japanese goods.

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