Washington, July 8, 2025 – Global markets are bracing for more tariff chaos as the White House plans to release a dozen or more letters signed by President Trump telling countries what taxes must be paid when they send goods to the United States.
The talk of the letters has now overtaken much of the conversation about ‘deals,’ with Trump’s team telling various nations in writing how much must be paid.
The result could hike costs that American pay for a variety of goods.
The president wouldn’t tip off reporters to which countries would get letters, but said they would be sent at some point this week, beginning on Monday.
Commerce Secretary Howard Lutnick told reporters the tariffs would go into effect on August 1.
The uncertainty comes just two days before the July 9th deadline Trump originally imposed, with the administration teasing more deals in the next 48 hours, and indicating the store is still open for negotiations.
‘We’ve had a lot of people change their tune in terms of negotiations. So, my mailbox was full last night with a lot of new offers, a lot of new proposals,’ Treasury Secretary Scott Bessent told CNBC. ‘So, it’s going to be a busy couple of days,’ he added.
“The United States is always willing to talk to everybody about everything,’ economic advisor Kevin Hassett told CBS ‘Face the Nation’ on Sunday.
“There are deadlines, and there are things that are close, so maybe things will push back past the deadline or maybe they won’t. In the end the president is going to make that judgment.”
On April 2, Trump announced sweeping tariffs in what he heralded as ‘liberation day, implementing a base 10 percent tariff on imports.
Some countries faced additional duties reaching up to 50 percent, though these country-specific tariffs were later suspended following market panic, prompting Trump to institute a 90-day pause.
During this period, Trump has secured preliminary trade agreements with the United Kingdom, China, and Vietnam, though all three deals still require further negotiation to finalize terms.
Trade advisor Peter Navarro had initially set an ambitious goal of completing ’90 deals in 90 days,’ a goal that won’t be attained.
U.S. stock markets opened lower early Monday amid anxiety over the looming deadline, with the S&P 500 down less than 1 percent, and the Dow Jones Industrial Average down 96 points. Bond yields were mixed.
In just one of the trade matters that is up in the air, Trump reportedly threatened the European Union with a 17 percent tariff on food exports, a move that could hammer that industry.
Without a deal the EU faces a 50 percent tax on all goods going into the United States.
EU officials told the Financial Times the new food tax is an escalation between the two trading partners.
Two federal courts have struck down the tariffs that Trump imposed under the International Emergency Economic Powers Act (IEEPA) by citing a national emergency.
However, the tariffs remain in effect while legal challenges work their way through the courts.
(Daily Mail)
