Trump to Start New US Tariffs Up to 70% from August 1

Photo: AP

On Thursday, former U.S. President Donald Trump said that his administration will start sending out official letters to various countries beginning Friday, letting them know about new import tariff rates they will have to pay when sending goods to the United States. These tariffs (import taxes) will officially begin on August 1, according to a report by Bloomberg.

While speaking to journalists, Trump said that the first batch of letters will be sent to around 10 to 12 countries, and more countries will receive their letters over the following days. These letters will explain how much tariff each country will have to pay, with the rates ranging between 10% and 70%.

If the higher tariffs are implemented, they will even go beyond what Trump first announced in April, when he mentioned tariffs ranging from 10% to 50% during a speech he called the “Liberation Day” announcement.

Which Countries Will Be Affected?

Trump did not reveal which countries are going to receive these letters first. He also did not say which specific products the tariffs will be applied to. He simply stated that the new rules will begin on August 1, and from that day onwards, countries will have to pay the tariffs if they want to continue selling goods in the U.S.

He added that the tariff money will start coming into the U.S. from August 1, helping to bring more revenue to the country.

Why Letters Instead of Trade Talks?

Speaking to the press before boarding a plane to Iowa on Thursday, Trump explained that it’s too complicated to make trade agreements with more than 170 countries at once. Because of this, he said the U.S. would now focus on sending letters to 10 countries at a time. Each of these letters will include a specific tariff rate for that country, which could be between 20% and 30%, according to a report by Reuters.

Trump stated, “We have more than 170 countries, and how many deals can you really make? These things are very complicated.”

This new system means that instead of spending months or years negotiating with each country, the U.S. will now simply tell them what tariffs they’ll face. This approach may help speed up the process but might also increase tensions with trade partners.

Trade Deal with Vietnam – A Rare Exception

While Trump plans to send letters to most countries, Vietnam is an exception. On Wednesday, the U.S. and Vietnam reached a special trade agreement. According to this deal:

• The U.S. will lower tariffs on Vietnamese goods to 20%, compared to the earlier proposed rate of 46%.

• In return, Vietnam will allow many U.S. goods to enter the country without any import taxes.

This kind of mutual agreement is what many countries would prefer, but Trump says that for most other nations, he will not go through lengthy talks and will just set the tariff rates directly.

Why Is Trump Doing This?

Trump has long believed that the U.S. gets an unfair deal in global trade. He thinks that other countries charge high tariffs on American goods, while the U.S. allows their goods in too cheaply.

So, by setting new, higher tariffs, he hopes to:

• Protect American businesses and jobs

• Encourage countries to negotiate fairer trade terms

• Bring more money into the U.S. government

Back in April 2025, Trump had shocked global markets when he announced plans to introduce tariffs ranging from 10% to 50%. However, most countries were initially given a temporary 10% rate to allow some time for negotiations. These talks were set to continue until July 9, after which higher tariffs could be enforced.

Will All Countries Get the Same Rate?

No, not all countries will get the same rate. According to U.S. Treasury Secretary Scott Bessent, about 100 countries will likely be offered the lowest tariff rate of 10%, but only if they offer similar treatment to American goods.

These are mostly smaller or less economically powerful nations, and the idea is to create basic mutual agreements quickly without going into complex negotiations.

Interestingly, the original plan was to include 123 countries and territories, including some unusual places like Australia’s uninhabited Heard and McDonald Islands, in this 10% category. However, the final number now looks to be closer to 100, meaning some areas are being moved to higher tariff brackets.

Big Countries Still in Talks

Some of America’s biggest trading partners—including the European Union, India, and Japan—are still in talks. These countries are currently facing higher tariffs as follows:

• European Union – 20%

• India – 26%

• Japan – 24%

If these countries fail to reach a deal before the July 9 deadline, they might end up paying even higher tariffs, possibly up to 50% or more.

Trump said he’s making progress with India but is still unsure about Japan. Britain, on the other hand, has already made a deal, which secures it a 10% tariff rate and special exemptions for industries such as automobiles and aircraft parts.

What About Countries That Don’t Respond?

Countries that haven’t even started trade talks with the U.S. are facing some of the highest tariff rates. For example:

• Lesotho – 50%

• Madagascar – 47%

• Thailand – 36%

This means that these countries could find it much more expensive to export goods to the U.S., and their products could become less competitive in the American market.

Trump’s Earlier Promise: 90 Trade Deals in 90 Days

Earlier this year, Trump’s advisors had promised to finalize 90 trade deals in 90 days. However, experts doubted this timeline from the beginning. Trade deals are usually very complex and can take months or even years to complete because they involve multiple sectors, economic rules, and political interests.

Now, by skipping traditional negotiations and simply sending out letters, Trump seems to be taking a shortcut to reach his goals faster. But this may create friction with countries who prefer negotiation over unilateral decisions.

What Happens Next?

As the July 9 deadline approaches, many countries will be trying to speed up negotiations with the U.S. If they succeed, they could secure lower tariff rates and better access to American markets. If not, they may have to pay higher import taxes, which could hurt their economies and increase the price of their products in the U.S.

On August 1, the new system will go into effect. That means all the countries that have received letters will start paying the new tariff rates when exporting to the United States. This could reshape international trade in a big way, affecting prices, product availability, and even political relationships.