The United States will initiate distributing tariff notices this coming week.
In a significant move, U.S. President Donald Trump has announced plans to implement tariffs on imports from various countries, including Vietnam and the European Union (EU), as early as August 1, 2025. The administration has prepared to send letters to countries detailing the specific tariff rates that will be imposed, based on progress in trade negotiations and individual country deals.
The tariffs, which range between 10 and 70 percent, are part of a broader trade policy initiative launched by Trump. In April 2025, he signed an executive order imposing a 10 percent duty on goods from almost all trading partners, framing it as retaliation against other nations' protectionist trade measures.
For Vietnam, a 20 percent baseline tariff on imports has been announced, with a 40 percent tariff on any transshipments. The EU is expected to face a 20 percent "reciprocal" tariff, a rate that Trump had previously delayed but now plans to implement as part of the new tariff schedule.
The tariffs are not uniform; instead, they are tailored based on negotiations with individual countries. Trump emphasized that letters would specify each country's best terms and corresponding tariff rates, offering a path to reduced tariffs if countries agree to better trade terms.
Countries are pushing to strike deals to avoid these elevated duties. The administration is currently navigating ongoing negotiations with several countries, with deadlines around July 9, 2025, for deals to be reached to avoid or reduce tariffs. If no agreement is reached, the higher tariff rates will come into force on August 1.
In a positive development, the Trump administration has unveiled trade deals with the United Kingdom and Vietnam. Trump also mentioned that the trade deal with the UK was beneficial for both parties. He stated that sending notices is easier than engaging in multiple negotiations.
Trump plans to inform countries of U.S. tariff rates by sending them letters, with the identities of the countries to be announced on July 7. The President also indicated that the tariff rates will be based on the trade deficit or surplus between the U.S. and the respective countries.
Trump's 2024 campaign proposals included universal tariffs of 10-20 percent, a 60 percent tariff on China, and specific tariffs on imports from Canada, Mexico, and other countries, reflecting a continuation and escalation of the tariff strategy. The steeper duties are set to take effect on dozens of economies on an unspecified date.
As the July 7 date approaches, the world awaits the announcement of the countries that will receive the tariff letters and the specific tariff rates that will be imposed. The impact of these tariffs on global trade and the U.S. economy remains to be seen.
- The scheduled tariffs, ranging from 10 to 70 percent, are not only a part of Trump's broader trade policy but also a continuation and escalation of his tariff strategy, as seen in his 2024 campaign proposals.
- The forthcoming announcement on July 7 of countries receiving tariff letters and the accompanying tariff rates could significantly influence global trade and the U.S. economy, given the wide-ranging impacts of these duties.
