Trump's Demand for Trade Agreements to Be Finalized by the Upcoming Wednesday Deadline, Suggesting Potential Extension for Negotiations
In a move that could potentially reignite trade tensions, the Trump administration has announced plans to send letters to about a dozen countries, notifying them of imposed tariff rates on their imports to the United States, starting from Monday, August 1, 2025. The specific countries targeted have not been publicly disclosed yet.
The planned tariff rates, as stated by President Trump, vary widely, potentially ranging from as high as 60 or 70 percent down to 10 or 20 percent, depending on the country and context. Some reports indicate that certain tariffs could reach up to 70 percent.
Trading partners such as South Korea and Thailand have reportedly been making efforts to negotiate and potentially avoid the steepest tariffs. However, the precise list of countries and the exact tariff rates per country remain unclear.
The move comes after a relative lull in trade tensions, injecting uncertainty and risk into financial markets. The U.S. is currently applying maximum pressure on other nations for trade deals. Trump and his advisers have declined to specify which countries will receive the letters.
In April, Trump announced elevated tariff rates on dozens of nations with meaningful trade surpluses with the U.S. Since then, few foreign governments have set new trade terms with Washington as per Trump's demands.
Notably, Canada will not be one of the countries receiving letters. However, Canadian Prime Minister Mark Carney has stated that he wants a new deal in place by July 21 or Canada will increase trade countermeasures.
The U.S. ambassador to Canada, Pete Hoekstra, has stated that there will be a deal with Canada, but it will not be communicated through a letter. Trump has stated that he expects to send letters to countries about potential tariff increases starting August 1, and he might send out letters to countries starting Monday, stating planned tariffs for each.
The exact impact of these tariffs on various countries and the global economy remains to be seen. The U.S. Treasury Secretary, Steven Mnuchin, rejected the idea that August 1 is a new deadline and declined to discuss what might happen on Wednesday.
Stephen Miran, the chair of the White House Council of Economic Advisers, said countries negotiating in good faith and making concessions could potentially extend the deadline. The price of Seattle-area homes is defying gravity even as demand wanes, according to a recent report.
This report is contributed by AP Business Writer Matt O'Brien. It is important to note that there are separate 50 percent tariffs on steel and aluminum and a 25 percent tariff on autos. Kevin Hassett, director of the White House National Economic Council, stated that President Donald Trump will decide when to give up on negotiations.
- The planning of tariff rates by the Trump administration on a dozen countries, as mentioned, could significantly affect the economy and finance sectors, stirring controversy in the realm of politics and general news.
- As stated, Microsoft headquartered in Seattle could potentially be impacted by the new tariff rates, given the global trade context, with potential repercussions on business and economy.
- In a surprising turn of events, Canada, though previously in trade tensions with the US, will not be one of the countries receiving letters regarding tariff rates this time, according to the US ambassador to Canada, Pete Hoekstra.
- The Government's decision to impose varying tariff rates on select countries could shift the dynamics of international trade and diplomacy, as certain countries, like South Korea and Thailand, engage in negotiations to avoid the steepest tariffs.
