First Letters Sent Outlining Tariff Increases

The moment, and day, is almost upon us.  President Trump’s 90-day easement for the tariffs which were announced on Liberation Day is due to come to an end tomorrow (9^th July).  

In preparation for this deadline, the U.S. President has sent letters to 14 countries outlining their tariff position, and putting it bluntly, it seems that the goalposts are moving again. 

Key points of note are: 

• As of this moment, letters were only sent to 14 countries, so a lot of countries and trade blocs, such as the EU, are still playing the waiting game 

• The two largest trading nations to receive a letter from the White House were Japan and South Korea who have both been hit with a 25% tariff rate 

• The tariff rates announced in the letters will come into force from 1^st August 

• It is made clear that these tariff rates can change, particularly if an impacted country raises their own tariff in response.  In this case, the U.S. will add the same increase to their own tariff rate. 

Outside of Japan and South Korea, the other countries to receive a letter to date are listed below along with the relevant tariff rate from 1^st August: 

Laos – 40% 

Myanmar – 40% 

Cambodia – 36% 

Thailand – 36% 

Bangladesh – 35% 

Serbia – 35% 

Indonesia – 32% 

Bosnia & Herzegovina – 30% 

South Africa – 30% 

Kazakhstan – 25% 

Malaysia – 25% 

Tunisia – 25% 

Negotiations continue between the U.S. and a host of countries to try and agree upon some form of trade deal however, to date, deals have only been struck with the UK, Vietnam and, to some extent, China.  Reports suggest that a deal with India is close.