On July 4, US President Donald Trump announced that the US government will initiate the dispatch of formal letters to trade partners, outlining new unilateral tariff rates expected to take effect from August 1. This strategic move aims to recalibrate trade dynamics by imposing tariffs potentially ranging from 10% to 70%, reflecting a significant shift in US trade policy. The administration plans to send approximately 10 to 12 letters on the first day, with all communications expected to be completed by July 9, aligning with the previously set deadline for tariff negotiations.
While the specific countries targeted remain undisclosed, reports indicate that key trade partners such as the European Union and Japan may be among the recipients. President Trump has publicly criticized these partners for their stringent negotiation stances, signaling a tougher approach to trade relations. Notably, Japan faces the possibility of tariffs as high as 35%, underscoring the US’s intent to leverage tariffs as a tool for renegotiating trade agreements and addressing perceived imbalances.