Trade Talks: US Plans to Raise Tariffs on Some Countries

The US is set to raise tariffs on a number of countries. This comes after a three-month deadline for trade negotiations, which ends soon. The White House plans to send letters to about 10 to 12 countries. These letters will detail new tariff rates, which could range from 10% to 70%. The US has already imposed tariffs as high as 50% on most trading partners. Higher tariffs could lead to market instability. Stock markets and futures have already fallen worldwide. The US stock markets were closed for Independence Day. But other markets reacted negatively to the news. It's not clear which countries will receive these letters. The US has criticized some trading partners, like the EU and Japan. The US president has threatened to set high tariffs on Japan. But it's not certain if these countries will be affected. The US has set a deadline of July 9 for countries to reach trade deals. However, some officials say this deadline is flexible. They suggest that negotiations could continue beyond July 9. But the president has said that tariffs will start on August 1. This means countries will have to pay more to trade with the US. So far, the US has only signed trade deal frameworks with two countries: the UK and China. The US president claims to have reached an agreement with Vietnam. But details of this agreement are unclear. The White House has not provided any terms beyond a social media post. The US has been working with 18 key partners to lower trade barriers. Hundreds of other countries are waiting to avoid higher tariffs. The US president has claimed to have made 200 deals. But he later acknowledged that this is not possible in such a short time. The idea of setting new tariffs for countries that can't or won't reach a deal has been around for over two months. But the timeline for this has kept changing. The US president has said that letters to countries are a day away. He believes this is the easiest way to handle trade with over 170 countries.