Trump Sets Deadline for Countries to Pay Tariffs Starting Aug 1

Many major trading partners, such as Japan, South Korea and the European Union, are still working to finalize deals.

US President Donald Trump announced that his administration will start sending out letters to trading partners on July 4 setting unilateral tariff rates, which countries would have to begin paying on Aug 1. About 10 or 12 letters will be sent on July 4, with more to follow in the coming days. The tariffs will range from 10 to 70 per cent.

Trump stated that countries will start paying the tariffs on Aug 1, and the money will flow into the United States from that date. If countries fail to reach deals by the deadline, Trump will impose rates on them.

So far, the US has reached deals with the UK and Vietnam, and a truce with China. Trump announced a 20 per cent tariff on Vietnamese exports and a 40 per cent rate on transshipped goods. Investors reacted positively to the Vietnam deal.

While some deals are in place, major trading partners like Japan, South Korea, and the EU are still in negotiations. Trump remains hopeful about an agreement with India but has criticized Japan's stance. He also mentioned that there will be no extension to the deadline.

According to the source: The Straits Times.