Washington — In a move that has sparked uncertainty among international trading partners, President Donald Trump announced plans to begin dispatching letters regarding new tariffs starting Monday. During a recent press briefing, Trump indicated the letters would reach approximately 12 to 15 countries as part of a broader trade strategy.
As the 90-day pause on tariffs nears its conclusion on July 9, Trump faced queries about the implementation timeline for the new rates. While some officials hinted at an August 1 start date, the president appeared unsure, repeatedly emphasizing that tariffs would be enforced. Commerce Secretary Howard Lutnick stepped in to clarify, stating that while rates are currently being determined, the new tariffs are set to take effect on August 1.
In April, the administration had proposed a base tariff rate of 10% on most countries, with additional duties potentially reaching up to 50%. This pause has granted countries a temporary reprieve, but its extension has left importers facing an extended period of ambiguity regarding future charges.
The murky tariff situation has had immediate effects on global financial markets. Asian stock exchanges reacted negatively on Monday, with Japan’s Nikkei index dropping by 0.3% and South Korean stocks falling 0.7%. Meanwhile, the broader MSCI index for Asia-Pacific shares outside Japan saw a slight decline of 0.1%.
In a message on his Truth Social platform, Trump provided more details about the upcoming tariff letters, warning that any nation cooperating with “anti-American policies” associated with the BRICS coalition would incur an additional 10% duty. This reference follows the recent joint statement from BRICS leaders, who expressed deep concerns over unilateral tariff actions that could jeopardize global economic stability.
In separate comments, U.S. Treasury Secretary Scott Bessent noted that significant trade agreements might be announced quickly, emphasizing progress in discussions with the European Union. He added that smaller countries, with which the U.S. has minimal trade, would also be informed of impending higher tariffs, initially proposed in an April announcement and temporarily suspended until the current pause ends.
Bessent elaborated that countries not advancing their negotiations risk being reverted to the previous tariff levels after August 1. He predicted that this could lead to a flurry of deal-making in the coming days.
The ongoing trade tensions initiated by the Trump administration have sent ripples through the global economy, compelling governments to seek protective measures and facilitate new agreements in response to American policies. Kevin Hassett, chairman of the White House National Economic Council, noted there might be some leeway for countries genuinely engaged in negotiations, suggesting that deadlines could potentially be adjusted based on progress made.
As discussions continue, both U.S. officials and international leaders brace for the impending changes that will shape the landscape of global trade in the months to come.