Trump Administration To Start Sending Letters to Trading Partners About Tariffs From August 1st if Trade Deal Is Not Reached

In a major escalation of U.S. trade policy, President Donald Trump announced that his administration would begin sending formal tariff notification letters to international trade partners starting Friday, ahead of a looming implementation deadline of August 1. These letters will specify new unilateral tariff rates—ranging from 10 % to 20 % for some countries and as high as 60 % to 70 % for others—after the 90-day negotiation window expires on July 9. Trump stated, “I think by the ninth they’ll be fully covered,” signaling an end to the moratorium and potential renewal of sweeping protectionist measures.

Trump has already clinched preliminary trade “deals” with the U.K., Vietnam (tariffs reduced to ~20%), and China, easing tensions with these key partners. Meanwhile, negotiations with India are reportedly continuing but remain unresolved; Japan and South Korea have shown limited progress

Liberation Day Tariffs: A New Trade Doctrine

The tariffs, which were first announced on April 2 as part of Trump’s “Liberation Day” plan, are meant to fix trade deficits and encourage manufacturing in the US. There is a standard 10 percent tax on all imports, but nations who have a lot of trade surpluses with the US have to pay far higher rates. For example, Lesotho, Cambodia, and Vietnam all have tariffs of 50%, 49%, and 46%, respectively. India has been given a rate of 26 percent, and China a rate of 34 percent. This is a big change in Trump’s “reciprocal tariff” tactic, which makes countries choose between adhering to Washington’s requirements or paying high import charges. The clock is ticking as markets get ready for things to happen quickly in the coming week.

90-Day Negotiation Window Ends July 9

Shortly after the initial announcement, the US granted a 90-day pause-expiring July 9—to allow countries to negotiate bilateral trade deals. So far, only the UK, Vietnam, and China have finalized agreements. Trump has made it clear that countries failing to reach a deal by the deadline will be subject to the full tariff regime.

Despite earlier speculation that the deadline could be extended, Trump confirmed there would be no such move. “Not considering,” he said, ruling out any possibility of leniency.

India Pushes for a Last-Minute Deal

India is actively negotiating to finalize a deal before the deadline. White House Press Secretary Karoline Leavitt stated that talks are progressing, noting that, “They are finalising these agreements, and you’ll hear from the President and his trade team very soon when it comes to India”.

Limited Room for Additional Agreements

Trump said that there were “a couple of other deals,” but he also said that most countries can now expect to be formally told about tariffs instead of more talks. The move makes it seem like the government is speeding up implementation instead of giving more room for diplomacy.

Possible Escalation in Tariff Rates

According to Bloomberg, if the administration formalizes its proposed 60 to 70 percent range, it would exceed the initially communicated 50 percent cap-further intensifying the impact on non-compliant countries.

As the July 9 deadline approaches, global markets and governments are on high alert, with economic and diplomatic implications expected to ripple well beyond the initial list of affected nations.

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