President Trump’s trade policy has been unpredictable, and that continues with letters he’s been writing to foreign leaders informing them of the tariff rates he intends to impose on their countries’ goods on Aug. 1.
The letters represent a radical approach to trade policy, with the president setting sizable tariff rates on a growing list of countries. They also do not create policy certainty; Trump himself at one point said that Aug. 1 is “not 100% firm,” only to backtrack a day later. The letters also leave room for negotiation, telling countries that the new rates could be lowered if countries get rid of trade barriers, like their own tariffs or regulations. (For a comprehensive explanation of what makes the new letters so radical, click here. For an overview of Trump’s tariffs so far, click here.)
Politics
Everything to know about Trump’s tariff letters — and why it’s a radical approach
The letters are an outgrowth of global tariffs Trump first imposed on April 2, with rates ranging from 10% to 50%. After markets panicked, Trump walked those tariffs back, setting them at 10% across the board, in what he called a 90-day “pause.” He said that during those 90 days, he would make tariff deals with dozens of countries.
After those 90 days were up on July 9, rates would go back to their April 2 levels for any countries without new tariff deals. Thus far, Trump has only signed one deal, with the U.K. He also announced a deal with Vietnam but has released no details on it.
Below are the tariff rates Trump has announced in his letters so far, as well as the one deal he has signed and the other he has announced. It also shows how big these trading partners are, by the value of imports the U.S. bought from them last year, as well as the U.S. trade deficit or surplus with them. A trade deficit is when the U.S. imports more from a country than it exports to them. A surplus is the reverse.
Loading…
