Washington (AFP) – President Donald Trump said Tuesday that he would not extend an August 1 deadline for higher US tariffs to take effect on dozens of economies, a day after he appeared to signal flexibility on the date.
While Trump imposed a sweeping 10 percent tariff on goods from almost all trading partners in April, higher rates customized to dozens of economies were unveiled, then halted until July 9. The president this week again delayed their reimposition, pushing it back to August 1. Trump insisted that there would be no further delay in these steeper tariffs. He added that the levies would start being paid on August 1, in line with letters now being sent out to trading partners.
“No extensions will be granted,” he posted on Truth Social. “There will be no change.” On Monday night, Trump had told reporters at a dinner that the August 1 deadline was “firm, but not 100 percent firm.” Pressed on whether the letters marked his final offers, Trump replied: “I would say final — but if they call with a different offer, and I like it, then we’ll do it.”
In a push for further trade deals, Trump sent letters to more than a dozen partners on Monday, including key US allies Japan and South Korea. Products from both countries would be hit with 25 percent duties, Trump wrote in near-identical documents to leaders in Tokyo and Seoul. Indonesia, Bangladesh, Thailand, South Africa, and Malaysia were among other countries facing duties ranging from 25 percent to 40 percent. Most countries receiving the letters so far saw US tariffs at similar or unchanged rates from those threatened in April, although some like Laos and Cambodia received notably lower levels.
In his messages to foreign leaders, Trump warned of further escalation if there was retaliation against his levies.
At a cabinet meeting Tuesday, Trump insisted that “big money will start coming in on August 1.” US Treasury Secretary Scott Bessent added at the meeting that tariff income could exceed $300 billion by year-end. The Trump administration is under pressure to show results after promising a flurry of deals following the US president’s tariff threats.
Trump said Tuesday that Washington was “probably two days off” from sending the European Union a letter setting out the updated tariff rate that the bloc would face. “They’re very tough, but now they’re being very nice to us, and we’ll see what happens,” he said. “We are talking to them.”
So far, Washington has only struck two pacts, with Britain and Vietnam, besides an agreement to dial back staggeringly high tit-for-tat levies with China. And US talks with Britain are still ongoing over steel and aluminum duties. Trump recently doubled US tariffs on imports of both metals to 50 percent while exempting the UK from this increase. But Washington could double the levy on UK steel and aluminum too starting Wednesday, if it determined that London had not complied with terms of their earlier deal.
In threatening tariff hikes on various economies, Trump cited in his letters a lack of reciprocity in trading ties. He also warned that goods transshipped to avoid higher duties would be subjected to steeper levels. But he added that if countries were willing to adjust their trade policies, Washington “will, perhaps, consider an adjustment to this letter.” He said that tariffs could be modified “upward or downward, depending on our relationship with your Country.”
© 2024 AFP
