Trump reveals plan to set tariff rates without trade deals

July 04, 2025 (MLN): President Donald Trump revealed that the United States will begin sending formal letters to countries on Friday, outlining the specific tariff rates they will face on exports to the U.S.

This move signals a major shift from his administration’s earlier commitment to negotiate numerous individual trade deals.

Speaking to reporters before leaving for Iowa on Thursday, Trump said that the letters would be sent to ten countries at a time, detailing tariff rates that may range from 20% to 30%.

He acknowledged the difficulty of reaching separate agreements with over 170 nations, stating, “We have more than 170 countries, and how many deals can you make? They're very much more complicated.”

While Trump suggested that a few more detailed agreements could still follow such as the recently announced deal with Vietnam he emphasized that most countries would instead be notified directly of the tariff rates they will face, foregoing in-depth negotiations.

The president’s new approach highlights the challenge of managing complex trade issues, including not only tariffs but also non-tariff barriers such as agricultural import restrictions.

Earlier this year, Trump’s team had pledged to pursue 90 trade deals in 90 days, a target widely questioned by trade experts due to the complexity and time-consuming nature of such agreements, as Bloomberg reported.

Treasury Secretary Scott Bessent told Bloomberg Television that around 100 countries are expected to receive a flat 10% reciprocal tariff rate, and he predicted a wave of trade agreements before the July 9 deadline, after which tariffs could be significantly increased.

The current plan reflects a reduction from the original list of 123 jurisdictions expected to receive the 10% tariff rate.

That initial list included small countries and territories such as Australia’s uninhabited Heard and McDonald Islands.

Back on April 2, Trump had rattled markets with sweeping reciprocal tariff rates between 10% and 50%, later temporarily capping most duties at 10% to allow time for negotiation before the July 9 deadline.

Despite that window, many countries with an initial 10% rate have not held negotiations with the U.S., except for the United Kingdom, which secured a deal in May to retain the 10% rate and won special concessions in key sectors like autos and aircraft engines.

Major trading partners currently in negotiations have been hit with steeper tariffs: 20% for the European Union, 26% for India, and 24% for Japan.

Nations not actively engaged in talks face even higher rates—50% for Lesotho, 47% for Madagascar, and 36% for Thailand.

In a notable development, Trump announced a trade agreement with Vietnam on Wednesday that will lower U.S. tariffs on many Vietnamese goods to 20%, down from the previously proposed 46%.

In return, many U.S. exports will be allowed into Vietnam duty-free.

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