Donald Trump sets August 1 start for new 10%-70% tariffs; letters to go out Friday

US President Donald Trump said that his administration will begin sending letters to trading partners on Friday notifying them of unilateral tariff rates that will take effect on August 1.

“We’re probably going to be sending some letters out, starting probably tomorrow, maybe 10 a day to various countries saying what they’re going to pay to do business with the US,” Trump told reporters on Thursday.

He said the tariffs would range from 10% to as high as 70%, exceeding the top rates he initially outlined in April.

“I think by the ninth they’ll be fully covered,” Trump said, referring to a July 9 deadline he set for countries to reach deals with the United States to avoid the higher import duties he has threatened.

The president did not specify which countries would be affected or whether certain goods would face steeper tariffs, but said trading partners would “start to pay on August 1. The money will start going to come into the United States on August 1.”

Trump has long threatened to impose what he calls “reciprocal” tariffs on countries that fail to reach trade deals with the US.

His administration had paused the additional tariffs for 90 days to allow negotiations, while maintaining a 10% baseline tariff in the interim.

The US has so far finalised agreements with the United Kingdom and Vietnam and reached a truce with China that eased some tit-for-tat duties.

Other major trading partners, including India, Japan, South Korea and the European Union, are still negotiating deals ahead of next week’s deadline.

The Indian delegation, led by special secretary Rajesh Agrawal of the Department of Commerce, has extended its stay in Washington. Initially scheduled for two days from June 26, the talks are focused on finalising an interim trade agreement.

India has hardened its stance against granting duty concessions to American farm products, while seeking tariff cuts for its labour-intensive exports such as textiles, engineering goods, leather, and gems and jewellery.

The United States is pressing for duty concessions on agricultural items, including dairy, apples, tree nuts, and genetically modified crops, as well as on industrial goods, automobiles, wines, and petrochemical products.

According to a Moneycontrol report, India and the US are on the verge of a breakthrough in their negotiations for a mini-trade deal, with an announcement possible as early as this week.

Trump has expressed optimism about reaching an agreement with India but has criticised Japan as a difficult negotiating partner, suggesting Tokyo should pay tariffs of “30%, 35% or whatever the number is that we determine.”

Trump indicated he would rather start sending out letters to impose tariffs than continue protracted negotiations.

“It’s much easier,” he said.