On July 4, 2025, U.S. President Donald Trump announced that starting Friday, the U.S. will send letters to trading partners detailing new tariff rates set to take effect on August 1.
These letters target countries without existing trade deals with the U.S. before the July 9 deadline marking the end of a 90-day pause on Trump reciprocal tariff plan. Initially, 10 to 12 letters will be sent, with more to follow in the coming days.
Tariffs are expected to range from 10% to as high as 70%, though specific countries and goods were not disclosed.
Deals have already been secured with the UK and Vietnam, and a truce was reached with China following escalating trade tensions. U.S. Treasury Secretary Scott Bessent indicated a potential high-level “framework” agreement with the EU to avoid 50% tariffs on its exports.
Global markets reacted negatively to the announcement, with South Korea KOSPI falling 2%, Germany DAX dropping 0.4%, and France CAC 40 down 0.7%. Commodity markets reflected these concerns, with copper futures down 1.8% and oil futures falling 0.3%.
The dollar weakened against major currencies, including the yen, euro, and pound.
These developments have raised concerns over potential trade wars and increased consumer costs, as the tariffs could hinder global trade and economic growth.
Stay sharp and stay informed
