President Donald Trump has signed letters to 12 countries with new tariff rates ranging from 10% to 70%. The documents, described as 'take it or leave it' offers, will be sent out Monday.
What's happening?
- Signed letters set to land Monday, offering fixed tariffs to each country.
- Rates start at 10% base and climb as high as 70% for select imports.
- A 90-day suspension of higher rates ends July 9; most tariffs likely begin August 1.
Why it matters
For global entrepreneurs and businesses, these tariffs could reshape supply chains. A 10% levy on imported components may squeeze profit margins or push up consumer prices for electronics, fashion and more. Higher rates up to 70% could target sectors like steel and auto parts.
A turbulent track record
Since April, the administration has used tariffs as leverage. Past deals include a 10% rate for Britain with sector-specific relief, and cutting Vietnamese tariffs to 20% from a threatened 46%. Negotiations with India and the EU have stalled.
Global ripple effects
Policy experts warn that unpredictable tariffs can trigger retaliation and market volatility. Startups, tech firms and digital nomads who rely on cross-border e-commerce face uncertainty in pricing and inventory planning.
Looking ahead
With the July 9 deadline approaching, all eyes are on last-minute deals. If talks falter, the tariff letters will activate new rates as early as August 1, ushering in a fresh phase of trade uncertainty.
Reference(s):
Trump signs tariff letters for 12 countries, proposes 10%-70% rates
cgtn.com
