US President Donald Trump unveiled a new round of tariff demand letters set to hit in August on imported goods from partners who fail to reach agreements with the US.
Trump announced a 30% rate on Algeria, Libya, Iraq and Sri Lanka, with 25% duties on products from Brunei and Moldova and a 20% rate on goods from the Philippines.
Iraq’s duties are down from 39% and Sri Lanka’s reduced from 44% rates that Trump had announced initially in April.
According to the Mint, Trump began notifying trading partners of new rates on Monday ahead of a deadline this week for countries to wrap up negotiations with his administration — and posted to social media that he planned to release “a minimum of 7” letters on Wednesday morning, with additional rates to be posted in the afternoon.
Out of the seven countries, only the Philippines ranks among America’s top 50 trade partners. Its main exports to the US markets include electronics, auto parts and textiles. Last year, the country sent some $14.1 billion of goods to the US.
Imports from the other six nations put together amounted to less than $15 billion last year, with Iraq — an exporter of crude oil — accounting for about half of that sum.
As traders concentrate on Trump's overall decision to extend the deadline for the so-called reciprocal tariffs to August 1, the most recent warnings haven't had much of an impact on markets thus far. That has essentially extended the time for negotiations with trading partners and originally stoked Wall Street's doubts that he would implement his import levies.
Earlier last week, Trump said he was "not 100% firm" on that new deadline for negotiations. Since then, he has made an effort to reassure trading partners and investors that he intends to follow through on his tariff threats. On Tuesday, he said that "all money will be due and payable starting August 1, 2025 — No extensions will be granted" on taxes particular to each nation.
The president also increased the stakes for two important trading partners, threatening to impose an additional 10% levy on India for its membership in the BRICS bloc of developing countries, which Trump claims is endangering the US dollar's position as the world's primary currency, and stating that the European Union may soon face a unilateral tariff rate despite negotiations' progress.
The barrage of letters and fresh tariff threats marked the latest turn in a dizzying trade agenda that has spurred volatility in markets and left consumers, businesses and trading partners anxious about the impact on trade flows and the global economy, reported the Mint.
