US President Donald Trump on Wednesday issued a fresh batch of letters to several trading partners, detailing new tariff rates as part of his administration’s ongoing campaign to secure a series of bilateral trade deals.
The letters, addressed to the leaders of the Philippines, Sri Lanka, Brunei, Algeria, Libya, Iraq, and Moldova, outlined duties ranging from 20% to 30%, set to take effect on August 1. The move follows a similar release on Monday and is part of a broader White House effort to pressure countries into renegotiating trade relationships with Washington.
Compared to the initial round of tariffs announced in April, some of the new rates have been adjusted. Sri Lanka, for instance, saw its rate reduced from 44% to 30%, while Iraq’s was lowered from 39% to 30%. In contrast, the Philippines saw its rate rise to 20% from 17%.
Back in April, Trump had imposed a baseline 10% tariff on nearly all US trading partners but hinted at much steeper levies for dozens of countries. The higher rates were originally set to take effect on Wednesday, but the administration has now postponed implementation until August 1, giving countries time to respond to the new terms.
“Common sense” and bilateral trade deficits were the main criteria for the new levies, Trump said at an event Wednesday. He reiterated that further letters — including one to Brazil, which currently faces no increase — would be sent later in the day.
Trump’s letters, nearly identical in language to those issued earlier in the week, describe the tariff hikes as a response to what he termed "far from reciprocal" trade relationships. The documents encourage foreign producers to relocate manufacturing to the United States to avoid duties and warn of potential escalation if any retaliatory action is taken.
So far, over 20 countries have received similar communications, including key US allies such as Japan, South Korea, Indonesia, Bangladesh, and Thailand. Analysts note that Asia has been a primary focus of the campaign, but attention is now turning to Europe.
EU Negotiations Underway
While European countries have not yet received individual letters, the White House appears to be edging closer to sending one. Trump said Tuesday that the administration was “probably two days off” from issuing a letter to the European Union outlining revised tariff terms.
“They're very tough, but now they're being very nice to us,” he said during a cabinet meeting.
In response, an EU spokesperson confirmed that the bloc is working toward an agreement with Washington “in the coming days.” Diplomats said the European Commission, which oversees trade policy for the 27-nation bloc, is engaged in intensive discussions and may continue negotiations until the August 1 deadline.
Sources told AFP that the EU expects a 10% baseline tariff on its exports to remain in place, but exemptions could be granted for sensitive sectors such as aircraft, cosmetics, and spirits.
Legal Challenges and Sector-Specific Tariffs
Trump’s sweeping trade policy remains under legal scrutiny, with court challenges to the tariffs progressing through the US legal system.
In addition to country-specific duties, the administration has imposed sector-based tariffs since Trump returned to office in January, including levies on steel, aluminum, and automobiles. On Tuesday, he announced upcoming tariffs on copper and pharmaceutical products — 50% and up to 200% respectively — though manufacturers would be given time to relocate production before the rates take effect.
As pressure mounts on the administration to secure tangible results from its aggressive trade agenda, only a few deals have been finalised so far — with the UK, Vietnam, and a temporary truce with China among them.
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US President Donald Trump on Wednesday issued a fresh batch of letters to several trading partners, detailing new tariff rates as part of his administration’s ongoing campaign to secure a series of bilateral trade deals.
The letters, addressed to the leaders of the Philippines, Sri Lanka, Brunei, Algeria, Libya, Iraq, and Moldova, outlined duties ranging from 20% to 30%, set to take effect on August 1. The move follows a similar release on Monday and is part of a broader White House effort to pressure countries into renegotiating trade relationships with Washington.
Compared to the initial round of tariffs announced in April, some of the new rates have been adjusted. Sri Lanka, for instance, saw its rate reduced from 44% to 30%, while Iraq’s was lowered from 39% to 30%. In contrast, the Philippines saw its rate rise to 20% from 17%.
Back in April, Trump had imposed a baseline 10% tariff on nearly all US trading partners but hinted at much steeper levies for dozens of countries. The higher rates were originally set to take effect on Wednesday, but the administration has now postponed implementation until August 1, giving countries time to respond to the new terms.
“Common sense” and bilateral trade deficits were the main criteria for the new levies, Trump said at an event Wednesday. He reiterated that further letters — including one to Brazil, which currently faces no increase — would be sent later in the day.
Trump’s letters, nearly identical in language to those issued earlier in the week, describe the tariff hikes as a response to what he termed "far from reciprocal" trade relationships. The documents encourage foreign producers to relocate manufacturing to the United States to avoid duties and warn of potential escalation if any retaliatory action is taken.
So far, over 20 countries have received similar communications, including key US allies such as Japan, South Korea, Indonesia, Bangladesh, and Thailand. Analysts note that Asia has been a primary focus of the campaign, but attention is now turning to Europe.
EU Negotiations Underway
While European countries have not yet received individual letters, the White House appears to be edging closer to sending one. Trump said Tuesday that the administration was “probably two days off” from issuing a letter to the European Union outlining revised tariff terms.
“They're very tough, but now they're being very nice to us,” he said during a cabinet meeting.
In response, an EU spokesperson confirmed that the bloc is working toward an agreement with Washington “in the coming days.” Diplomats said the European Commission, which oversees trade policy for the 27-nation bloc, is engaged in intensive discussions and may continue negotiations until the August 1 deadline.
Sources told AFP that the EU expects a 10% baseline tariff on its exports to remain in place, but exemptions could be granted for sensitive sectors such as aircraft, cosmetics, and spirits.
Legal Challenges and Sector-Specific Tariffs
Trump’s sweeping trade policy remains under legal scrutiny, with court challenges to the tariffs progressing through the US legal system.
In addition to country-specific duties, the administration has imposed sector-based tariffs since Trump returned to office in January, including levies on steel, aluminum, and automobiles. On Tuesday, he announced upcoming tariffs on copper and pharmaceutical products — 50% and up to 200% respectively — though manufacturers would be given time to relocate production before the rates take effect.
As pressure mounts on the administration to secure tangible results from its aggressive trade agenda, only a few deals have been finalised so far — with the UK, Vietnam, and a temporary truce with China among them.
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