U.S. President Donald Trump announced that the United States will begin notifying countries of specific tariff rates on Friday (July 5), signaling a significant departure from earlier plans to negotiate numerous individual trade deals.
Speaking to reporters before heading to Iowa on Thursday, Trump acknowledged the difficulties of negotiating with over 170 countries and said the new approach would involve sending letters in batches of ten, outlining flat tariff rates—typically ranging from 20% to 30%.
“We have more than 170 countries, and how many deals can you make? They’re very much more complicated,” Trump remarked.
While a few more detailed agreements are still expected, including one recently finalized with Vietnam, Trump made it clear that most countries will be assigned a tariff rate without lengthy negotiations.
The move reflects the Trump administration’s struggles to fulfill its earlier promise of “90 trade deals in 90 days,” an ambitious target that trade experts deemed unrealistic.
According to Treasury Secretary Scott Bessent, roughly 100 countries are likely to receive a reciprocal 10% tariff rate. He also predicted a “flurry” of trade announcements ahead of a July 9 deadline, after which tariffs could rise sharply if no agreements are reached.
Earlier, the administration had released a list of 123 jurisdictions—including small nations and territories—slated for 10% tariffs. But only a handful, including the UK, have completed negotiations. The UK secured its 10% rate along with sector-specific benefits for automotive and aerospace goods.
Larger trading partners, such as the EU, India, and Japan, face steeper tariff rates of 20%, 26%, and 24% respectively. Others not currently engaged in talks may face even higher duties—Lesotho (50%), Madagascar (47%), and Thailand (36%).
On Wednesday, Trump touted a new agreement with Vietnam, reducing tariffs on many Vietnamese exports to 20% from a previously threatened 46%, while allowing duty-free entry for several U.S. products.
This policy shift highlights the administration’s focus on simplifying trade enforcement and securing short-term wins as the July deadline approaches.
Source: Reuters