Trump: The United States will begin sending letters to various countries as early as Friday to set new tariff rates before July 9.

Trump: We may send out some letters, possibly starting tomorrow, maybe sending 10 letters to various countries each day, informing them of how much it costs to do business with the United States.

Written by: Bao Yilong

Source: Wall Street Journal

The Trump administration is preparing to send unilateral tariff rate notifications to trade partners, marking a new tough phase in its trade policy. This move will be implemented before the July 9 deadline for negotiations, putting direct pressure on countries that have not reached an agreement.

On July 3, according to the Global Times, European Commission President Ursula von der Leyen stated that the EU aims to reach an agreement by July 9. On the issue of tariffs, they are "ready to reach a principled agreement with the United States." However, if negotiations fail, the EU will firmly take countermeasures to protect the European economy.

On the same day, according to media reports, U.S. President Trump stated that the government may start sending letters to trade partners as early as Friday, unilaterally setting tariff rates ahead of the July 9 negotiation deadline. Trump told reporters:

We may issue some letters, possibly starting tomorrow, sending 10 letters to various countries each day, informing them of the costs associated with doing business with the United States.

Trump also stated that sending a letter is "much easier" than continuing negotiations, implying that he prefers to unilaterally set tariff rates. U.S. Treasury Secretary Becerra indicated in a television interview that whether to extend the deadline will ultimately be decided by Trump:

We will act according to Trump's wishes, and he will decide whether the other party is negotiating in good faith.

Analysis suggests that Trump's statements have significantly heightened trade tensions, adding urgency for trade partners eager to reach agreements with the U.S. government.

"Deadline" Approaches

On April 2, the U.S. President announced for the first time the increase of the so-called "reciprocal" tariffs, but suspended the implementation for 90 days to give countries time to negotiate, during which a 10% tax rate will be applied.

The United States has currently announced agreements with the United Kingdom and Vietnam. Previously, Wall Street Journal reported that the Vietnam agreement was announced on Wednesday, imposing a 20% tariff on goods exported to the United States and a 40% tariff on items considered to be transshipped. Although the tariff rates in the Vietnam agreement are lower than the 46% tariff initially imposed by Trump on the country, they are still higher than the general level of 10%.

The White House has not yet released a list of agreement terms or a formal announcement, and many details of the agreement remain unclear. Investors reacted positively to news of the US-Vietnam agreement, with stock prices of American manufacturers with factories in Vietnam rising on Wednesday.

Major trading partners such as Japan, South Korea, and the European Union are still working to finalize agreements. Trump is optimistic about reaching a deal with India, but he speaks harshly about the prospects of an agreement with Japan.

According to a report by Wall Street Journal, Trump once called Tokyo a difficult negotiating partner and threatened to impose stricter punitive measures, including restrictions on automobile export quotas. Trump also stated that he might impose tariffs of 30-35% on Japanese goods.