The Trump administration announced that it will impose a new round of tariffs on exports from trading partners, effective August 1.
This is a major escalation in the US's "reciprocity" trade campaign, coming ahead of a self-imposed July 9 deadline for countries to reach an agreement with Washington.
MAIN CONTENT
The US government will send new tariff notice letters from 10-12 countries, with tariffs ranging from 10% to 70% effective from August 1.
Vietnam and the UK are two countries that have signed trade agreements with the United States, while many major partners are still in urgent negotiations.
Global financial markets reacted strongly, Fed officials warned of rising inflation risks from tariff policies.
President Trump announces new tariffs starting in August
President Donald Trump confirmed that he will send warning letters to 10-12 countries about the plan to impose new tariffs ranging from 10% to 70%, higher than the old limit of 50%, starting on August 1, 2025. The previous 90-day negotiation period is about to end, forcing partners to decide quickly.
Simple and controlled tariffs are better than lengthy negotiations. We want simple and sustainable agreements that are in the best interests of the United States.
Donald Trump, President of the United States, July 2025
While the tax will be paid by the importer, it will ultimately be passed on to consumers or businesses through higher prices or reduced profits. According to Bloomberg Economics, the average tariff on US imports could rise from 3% to around 20%, representing a major shift in US trade policy.
How are countries negotiating ahead of the tariff deadline?
Negotiations with major economies such as South Korea, the EU, Indonesia, and Switzerland are in full swing. Vietnam and the UK are among the countries that have successfully concluded “reciprocal” trade deals. Negotiations with China have produced a truce that includes the removal of some tariffs and export restrictions.
Last week, the United States and Vietnam signed an agreement imposing a 20 percent tariff on Vietnamese exports and a 40 percent tariff on re-exports, down from the planned 46 percent but still higher than the provisional 10 percent rate. Vietnam said negotiations are continuing to achieve the best possible outcome.
New moves from US trading partners
Indonesia expressed optimism about concluding a multi-sectoral trade deal covering minerals, energy and defense. Cambodia also announced that it had reached a reciprocal trade framework, details of which will be announced soon. The United States had threatened to impose tariffs of 49% on Cambodia, the highest of any country mentioned.
South Korea, Japan, and the EU are still working on bilateral deals. Some European automakers have offered tariff reductions in exchange for greater investment in the United States. South Korea’s top trade representative is expected to visit Washington this weekend with new proposals to avoid the new tariffs, Bloomberg reported.
We will follow the President's direction; he will decide whether the countries are negotiating in good faith and whether there can be an extension.
Scott Bessent, US Treasury Secretary, July 2025, CNBC
President Trump maintained an optimistic view on the possibility of signing a deal with India but was harshly critical of Japan, saying Tokyo could face tariffs of up to 35%.
Market and monetary policy responses to rising tariff pressures
Global markets immediately reacted negatively as stock indexes in Asia and Europe fell across the board and the US dollar also lost value. However, July 4 is a holiday in the US, so US stock and bond markets were closed.
Federal Reserve officials remain cautious, warning that higher tariffs could push inflation higher, while maintaining a policy of no interest rate cuts despite pressure from the White House.
The Trump administration's unilateral tariff policy is putting great pressure on trading partners, forcing them to choose whether to quickly sign or accept higher costs from August, which is considered an important turning point for global trade.
Frequently Asked Questions
When will the new US tariffs take effect? The new tariffs will be applied from August 1, 2025, after notification to previous partners. What percentage range will the new tariffs apply? The tariffs range from 10% to 70%, up from the previous limit of 50%. Has Vietnam reached a trade deal with the US? There has been an agreement on a 20% tariff on exports, but negotiations continue. How have financial markets reacted to the new tax policies? Asian and European stocks fell, the dollar weakened; the Fed warned of potential inflation. Does the US government plan to extend the tariff negotiation period? The decision to extend depends on whether the countries negotiate in good faith, as confirmed by Treasury Secretary Scott Bessent.
Source: https://tintucbitcoin.com/bitcoin-ethereum-tac-dong-do-thue-moi/
Thank you for reading this article!
Please Like, Comment and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
