AsianFin -- U.S. President Donald Trump on Tuesday signaled more sectoral tariffs and reciprocal tariffs on small economies would be announced on the horizon.
Credit：China Central Television
Trump on Tuesday evening said the United States would soon inform a group of minor trading partners of tariffs higher than 10%. “We’ll be releasing a letter soon talking about many countries that are much smaller, where you might not do an [individual] letter,” Trump said after returning from Pittsburgh, adding: “we’ll just do one tariff for all of them,” and that the rate would “probably be a little over 10%.”
Trump also disclosed he could impose impose tariffs on pharmaceuticals by August 1 and that levies on semiconductors could come soon as well. “Probably at the end of the month, and we’re going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we’re going to make it a very high tariff,” Trump said.
Trump said his timetable of the semiconductor tariffs was similar to the drug tariffs, and it was “less complicated” to impose levies on chips.
Trump during a Cabinet meeting on July 8 disclosed steep tariffs on the pharmaceutical sector will be announced “very soon”, while he could offer the pharmaceutical manufacturers at least a year for transition of their production to the U.S. before implementing the tariffs up to 200%. "We’re going to give people about a year, year and a half to come in, and after that they're going to be tariffed," Trump said. "If they have to bring the pharmaceuticals into the country, … they're going to be tariffed at a very high rate — like 200%."
A day later, the president said he would impose a 50% tariff on all copper imports into the United States, effective August 1.
Trump has so far released letters to heads of more than 20 U.S. trading partners, dictating new tariffs starting August 1.
Trump on July 7 disclosed tariffs on 14 countries in a series of social media posts, hitting imports from Japan, South Korea, Kazakhstan, Malaysia,Tunisia, South Africa, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Thailand, Cambodia,Laos and Myanmar with tariffs ranging from 25% to 40%.
Trump on July 9 posted letters to the leaders of eight countries on his social media platform Truth Social, informing all the goods imported from the Philippines, Brunei, Moldova, Algeria, Iraq, Libya, Sri Lanka and Brazil will face tariffs ranging from 20% to 50%, effective August 1. A day later, Trump announced in the letter that he would slap Canada with 35% tariffs, and said 15% or 20% blanket tariffs would be imposed on all the remaining countries. Trump on July 12 sent letter informing the European Union and Mexico of 30% tariffs.
Trump in the letters issued similar threat that transshipping goods will be high hit with higher tariffs, and the aforementioned countries, if later decide to slap the U.S. with higher tariffs ,will face extra tariffs with the same level they will impose on top of the new tariff rates effective on August 1. And the president added companies in these countries will be granted exemptions if they decide to make products in the United States. In these letters, Trump said he would consider “an adjustment” to the letter if the countries cooperate. “These Tariffs may be modified, upward or downward, depending on our relationship with your Country,” the president wrote.
Explore more exclusive insights at nextfin.ai.
