Trump vows tariff hikes of up to 70%, says nations will 'start to pay' in August

Published on 04/07/2025 - 16:43 GMT+2

US President Donald Trump is expected to statesman formally notifying cardinal US trading partners of a sweeping caller tariff authorities arsenic early arsenic Friday, according to media reports. 

The duties, group to return effect connected 1 August, could spot immoderate countries look levies of up to 70% connected exports to nan United States.

Speaking to reporters up of nan Independence Day holiday, Trump said astir "10 aliases 12" letters would beryllium issued immediately, pinch much to travel complete nan coming days. 

"By nan ninth they'll beryllium afloat covered," he stated, referring to a 9 July deadline he antecedently group for reaching deals that could avert nan higher tariffs.

Trump's approach, wide seen arsenic portion of his America First waste and acquisition agenda, leaves small room for negotiation.

"They'll scope successful worth from possibly 60 aliases 70% tariffs to 10 and 20% tariffs," he added, making clear that nan standard of nan caller charges would alteration by country.

The United States is presently successful delicate talks pinch respective economies, including South Korea, Indonesia, Switzerland and nan European Union. The discussions are understood to beryllium astatine a captious stage, wherever delicate issues are being tackled.

The White House first announced nan higher "reciprocal" tariffs connected 2 April, but delayed afloat implementation for 90 days to let clip for talks. 

During nan interim, a 10% complaint was applied. Should nan afloat slate of tariffs beryllium enacted adjacent week, Bloomberg Economics estimates nan mean work connected US imports could emergence to astir 20%, up sharply from nan pre-Trump mean of astir 3%.

Such an summation would correspond a important escalation from nan first model unveiled successful April, wherever projected tariffs ranged from 10 to 50%. The president has not yet elaborate which countries aliases equipment would autumn nether nan highest complaint brackets.

Trump said nan measures would statesman generating gross from adjacent month. "Countries would commencement to salary connected 1 August. The money will commencement coming into nan United States connected 1 August," he said.

While tariffs are officially paid by importers aliases their intermediaries, nan costs are often passed down to consumers aliases absorbed by businesses done reduced profit margins. 

According to section media, economists person cautioned that nan delayed effect of tariffs could complicate efforts by nan Federal Reserve to negociate inflation. Some Fed officials are reportedly hesitant to trim liking rates while nan afloat economical effects of nan waste and acquisition measures stay unclear.

The caller tariffs person rattled world markets, pinch shares successful Asia and Europe declining and nan dollar weakening. US markets remained closed connected Thursday for nan Fourth of July holiday.