【By Observer Net, Liu Chenghui】The "reciprocal tariff" grace period set by President Trump will end on July 9. On July 6 local time, U.S. Treasury Secretary Becerra warned that the Trump administration will send tariff letters to about 100 countries in the coming days. For countries that do not reach an agreement with the United States in time, the Trump administration will impose "reciprocal tariffs" according to the policy announced in April from August 1.

He added that these measures will target countries that are not major trading partners.

In a program titled "State of the Union" aired by CNN on June 6, Becerra stated that the 90-day tariff grace period of the Trump administration will end on Wednesday (the 9th), and the U.S. government will send tariff notice letters to about 100 countries in the coming days.

"If you don't move forward, then on August 1, you will return to the tariff level on April 2," he said.

Becerra interviewed on CNN's "State of the Union" program

However, Becerra refused to disclose which countries would reach an agreement with the United States. He said that about 100 letters would be sent to small countries with which "we have little trade", many of which already have a base tariff rate of 10%. The letters to be sent will determine the tariff rates for each country.

"Many countries have never proactively contacted us," he said, "We have leverage in this trade relationship because the U.S. is in a trade deficit."

He also said that the Trump administration focuses on 18 major trade partners, which account for 95% of the U.S. trade deficit. However, he said that countries have "delayed a lot of time" in finalizing trade agreements.

Becerra opposed referring to August 1 as a new deadline. He called the current government strategy "maximum pressure".

"This is not a new deadline. We are saying: this is the implementation date. If you want to speed it up, just negotiate quickly; if you want to go back to the old tariff rate, that's your choice," he said.

He used the EU as an example, stating that after Trump threatened to impose 50% tariffs on EU goods, the EU finally agreed to return to the negotiation table.

Trump initially announced on April 2 that he would impose high "reciprocal tariffs" on all U.S. trading partners. After triggering a global stock market shock, Trump repeatedly changed his mind, announcing a 90-day suspension of "reciprocal tariffs" until July 9, maintaining a 10% base tariff rate. He pressured countries to negotiate trade deals and threatened that at that time, the U.S. would directly impose tariffs on countries that did not reach an agreement.

Trump had said that he would issue the first batch of tariff letters on the 4th. He also said that the "reciprocal tariffs" imposed by the U.S. on other countries could reach as high as 60% or 70%, most of which would take effect on August 1.

On July 5, Trump once again hinted that he had signed tariff letters for 12 countries, which outlined various tariff levels that these countries' exports to the U.S. would face, and they would be sent out on the 7th, "whether they accept them or not."

CNN described that at 12:01 a.m. Eastern Time on July 9, this suspension will end, and what happens then is unpredictable. This point is of great significance, and the global economy is closely watching.

Despite frequent meetings between the Trump administration and officials of various countries, and repeated claims that multiple agreements are about to be completed, so far only three "framework agreements" with the UK, China, and Vietnam have been announced, especially the agreement with Vietnam has not yet been finalized, and details are minimal.

Trump's announcement on April 2 regarding an agreement with Vietnam stipulated that the minimum tariff on Vietnamese goods would be 20%, double the rate during the three-month suspension period. This arrangement has raised doubts among outsiders: even if an agreement is reached with the U.S., it may not necessarily result in lower tariff rates.

However, considering the tariff framework announced in April, the tariff on Vietnamese goods would originally have increased to at least 46%, one of the highest levels among target countries. The current 20% tariff rate is therefore seen as "a relief".

This might be a deliberate strategy by Trump, fulfilling his campaign promise to "impose high tariffs on other countries to increase U.S. revenue and bring manufacturing jobs back", while retaining some negotiation space.

Economists have warned that Trump's trade war, especially the broad tariffs on imported goods from China, will increase costs for American consumers. Some retail giants, including Walmart, have stated that despite Trump's opposition, they will still raise prices.

"We currently see no signs of inflation," Becerra said on July 6 in an interview with Fox News, criticizing such statements as "wrong information" and "tariff paranoia." He and other Trump officials have repeatedly insisted in recent months that countries like China will bear the cost of the tariffs.

The U.S. wholesale inflation slightly increased in May, partly due to rising commodity costs. Data released by the U.S. Bureau of Labor Statistics in June showed that the Producer Price Index (PPI), a key measure of wholesale inflation, rose 0.1% in May, bringing the annual rate to 2.6%.

Former U.S. Treasury Secretary Larry Summers strongly criticized Becerra for downplaying the impact of tariffs on the economy. He said on ABC on June 6 that tariffs "may bring in some revenue," but at the cost of higher inflation and reduced competitiveness of U.S. producers.

This article is an exclusive contribution from Observer Net. Unauthorized reproduction is prohibited.

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