FX.co ★ Trump Plans Tariff Letters, Ditches Complex Deals

President Donald Trump announced on Thursday his intention to begin sending letters starting from Friday, July 4, to various countries, notifying them of the tariffs required to sell goods in the United States. This approach moves away from the traditional method of negotiating separate trade agreements with individual nations. "I am inclined to send a letter that specifies the tariff rate they'll be subjected to," Trump remarked, describing this method as "much easier." This decision precedes a July 9 deadline to reinstate widespread tariffs following a 90-day hiatus that began in April. During this period, Trump has established agreements with Vietnam and the United Kingdom and has outlined a framework with China. He is targeting an initial 10% tariff, proposing higher rates for countries with trade deficits with the U.S. Despite this, he rejected the extension of the deadline, citing challenges in negotiating with more than 170 countries. "How many deals can you make?" he questioned. Trump also criticized negotiations focused on particular products like beef or ethanol, expressing a preference for uniform tariffs of 20%, 25%, or 30%. "This is what you’re going to pay," he stated.