On Wednesday, July 9th, US President Trump issued tariff letters to countries including the Philippines, Iraq, and Moldova, notifying them that if they fail to reach a trade agreement with the United States by August 1st, tariffs will be imposed on their exported goods.
Among the countries listed in the tariff letters on Wednesday, the Philippines is the largest trade partner of the United States. According to data from the Office of the United States Trade Representative, the trade deficit of the United States with the Philippines in 2024 was $4.9 billion.
The planned tariff rates listed in the letter are as follows:
– 30% tariff on imports from Libya.
– 25% tariff on imports from Brunei.
– 25% tariff on imports from Moldova.
– 30% tariff on imports from Algeria.
– 30% tariff on imports from Iraq.
– 20% tariff on imports from the Philippines.
The tariffs for the aforementioned countries are generally consistent with the reciprocal tariff rates announced by the White House in April.
On Monday, Trump issued tariff letters to 14 countries including South Africa, Malaysia, and Thailand, planning to impose tariffs ranging from 25% to 40% starting from August 1st.
At the same time, Trump announced this week that a 50% tariff would be imposed on imported copper, aligning with the tariff rates for aluminum and steel, injecting new uncertainty into the metal market. He also suggested imposing tariffs of up to 200% on pharmaceuticals, but would provide pharmaceutical companies with a one to two-year adjustment period.
On Wednesday, COMEX copper futures prices fell over 3% after a sharp rise. On Tuesday, New York futures prices increased by 25% compared to other global prices.
Meanwhile, Beijing warned the United States again on Tuesday not to escalate trade tensions and stated that retaliation will be taken against countries that exclude China from the supply chain by reaching agreements with the United States.
The following is the status of trade negotiations between the United States and other partners:
Vietnam: After reaching an agreement with Vietnam, products exported from Vietnam will face a 20% tariff, lower than the 46% tariff rate set by the United States in April. If the origin of Vietnam’s goods is China or other countries, then “any transshipment” will face a higher 40% tariff from the US.
European Union: The EU has expressed willingness to accept a baseline tariff of 10% on many of its export products but is seeking exemptions for certain industries. The EU is striving to reach an agreement with the United States this week.
Canada: Canada has rescinded the digital services tax that would have impacted large US tech companies. The White House stated that trade negotiations between the two countries have resumed, with a focus on reaching an agreement by mid-July.