The United States President Donald Trump has announced that starting this Friday (July 4th), the U.S. will begin sending notification letters to trade partners informing them of the tariff rates they will need to pay for exporting to the U.S. This action comes with only a few days left until the July 9th negotiation deadline.
Trump emphasized that negotiating with over 170 countries individually is “very complex,” which is why he prefers to send out letters directly to inform each country of the tariffs they will need to pay.
Before leaving for Iowa on Thursday, Trump told reporters, “Facing over 170 countries, how many agreements can you reach? Of course, you can achieve good agreements through negotiations, but that is much more complicated.”
He added, “I would rather send a letter explaining the amount you need to pay to do business in the United States. I think everyone will accept this approach.”
Previously, Trump has reached agreements with the UK, Vietnam, and has achieved a “ceasefire” consensus with China, easing tariff actions between the two world’s largest economies.
However, major trading partners including Japan, South Korea, and the European Union are still working on finalizing agreements. Trump remains optimistic about reaching an agreement with India but holds a different outlook on negotiations with Japan, describing Tokyo as a “tough negotiating partner” and emphasizing that Japan may be forced to pay tariffs of “30%, 35%, or any number we decide” if they do not show negotiating sincerity.
According to the Trump administration’s plan, notification letters will be sent out at a rate of about 10 countries per day.
U.S. Treasury Secretary Scott Bessent told Bloomberg on Thursday that around 100 countries may be subject to a 10% equivalent tariff, and whether to extend the negotiation deadline will be personally decided by Trump.
In the agreement reached with Vietnam, the U.S. will impose a 20% tariff on Vietnamese goods and a 40% tariff on goods deemed to be “transshipped” through Vietnam.
This tariff rate is lower than the previously mentioned 46% by Trump, but still higher than the current standard 10% tariff rate. The White House has not yet disclosed the specific terms of the agreement or made a formal announcement.
However, investors have reacted positively to this agreement, with the stock prices of some U.S. manufacturers with production facilities in Vietnam rising as a result.
Bessent stated, “We will do what the President wants to do, and whether they negotiate sincerely will be judged by him.”
Bessent revealed that the U.S. Trade Representative Jamieson Greer will continue intensive negotiations with European officials over the weekend.