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U.S. Sends Tariff Warning Letters as August 1 Reciprocal Duties Take Effect

Letters delivered Monday specify country-by-country tariffs to intensify pressure for bilateral trade deals

Le président brésilien Luiz Inacio Lula da Silva (au centre) s'exprime lors du sommet des BRICS à Rio de Janeiro, au Brésil, le 6 juillet 2025
Le président américain Donald Trump pendant le sommet du G7 au Canada, le 16 juin 2025
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Overview

  • President Trump instructed the Treasury to defer the 10%–50% reciprocal tariffs to August 1 for an extended negotiation window
  • The Treasury began sending 12-15 letters to major trading partners on Monday detailing impending duties and plans to issue around 100 notices to smaller economies
  • Only the United Kingdom and Vietnam have secured exemptions by striking bilateral agreements, while the EU, China, Japan and South Korea continue talks under looming levies
  • Letters posted on Truth Social outline rates ranging from 25% on Japanese and South Korean imports to 40% on goods from Laos and Myanmar, with duties set to vary by bilateral deficit
  • The administration is targeting 18 partners accounting for 95% of the U.S. trade deficit and President Trump threatened an extra 10% surcharge on any country aligning with BRICS’ policies