Trump's "Trade Letters" Trigger New Wave of Global Tariff Warnings

President Donald Trump suddenly announced that he had signed a series of "trade letters" ahead of the deadline to impose tariffs on multiple key trade partners, signaling that new tariffs as high as 70% may come into effect. This move has sent shockwaves through the global trade community, with the EU, China, and other countries on high alert. The world is now focusing on Washington, waiting for these "trade letters" to reveal the direction of future international trade patterns.

As the deadline for imposing tariffs on major trade partners approaches, President Trump revealed on Friday (July 4, Greenwich Mean Time) that he had signed several letters intended to inform relevant countries of the tariffs they will face. This move has undoubtedly heightened global concerns about the escalation of trade conflicts.

Trump told reporters on Air Force One: "I signed some letters, and they will be sent out on Monday (July 7)." He added that there would be "about twelve letters," but did not disclose the specific recipient countries. Trump said the list of countries affected will be announced on Monday.

"Sending a letter to tell them: 'Listen, we know we have a certain deficit, or in some cases a surplus, but it's not a big amount. This is the cost you need to pay to do business in the US,' it's simpler," said Trump. He also mentioned that the US had taken similar actions with the UK and China, and believed this was "very good for both sides."

Tariff Threats: Impact from 10% to 70%

On Thursday (July 3), Trump had previously warned that he would use letters to notify trade partners of the punitive tariffs they would face, revealing that the tariff rates would range between 10% and 70%. Currently, no agreement has been reached on the tariff disputes between the EU and the US.

The Trump administration has systematically used tariffs as leverage to force other countries to make concessions in other areas. In early April, the US imposed high additional tariffs on several countries, but later reduced most of the tariffs to 10% within 90 days to facilitate negotiations.

The EU's tariff exemption period is set to expire on July 9, while many other countries' periods ended earlier, on July 8. Affected countries are currently striving to reach an agreement with the US to avoid higher tariffs. US officials have hinted that several trade agreements may be announced in the coming days.

EU Faces 50% Tariff Pressure; Interaction Between US and Chinese Leaders Attracts Attention

Trump had threatened the EU that if no agreement is reached with the US by July 9, it could face a 50% tariff increase. This is five times the current base rate of 10%. Nevertheless, he also hinted at the possibility of extending the deadline. It is worth noting that the 10% basic tariff rate introduced by Trump is already significantly higher than previous tariff levels.

EU Trade Commissioner Cecilia Malmström conducted further negotiations in Washington this week and described it as a "productive working week."

Trump's tariff policies have sparked disputes with trade partners around the world. For certain specific products, such as cars, the US has applied a higher tariff rate of 25%, while the tariffs on steel and aluminum products have reached as high as 50%.

Amid the escalating trade tensions, it has been reported that President Trump said on Friday (July 4) that he might visit China or invite the Chinese leader to visit the US. The two leaders had previously extended invitations to each other last month.

Source: DW

Original: https://www.toutiao.com/article/1836818311334920/

Statement: This article represents the views of the author himself.