President Trump plans to mail out tariff threat letters starting Friday. The commander-in-chief will send between 10 and 12 letters that day with more coming over the next few days. Trump told reporters the new import taxes will hit countries with rates ranging from a crushing 60 to 70 percent down to 10 to 20 percent. Countries have until July 9 to cut deals with America or face these steep penalties. The president said mailing letters with the exact tariff amounts seems much easier than lengthy talks.
Trump previously talked about a 10 percent baseline tariff with a 50 percent maximum rate. The new announcement shows much higher potential taxes on foreign goods coming into America. The president kept quiet about which countries will face these duties and whether the taxes will target specific products. Import taxes get paid by companies bringing goods into the country. These businesses usually pass the extra costs along to American shoppers.
The White House wants more cash flowing into government coffers and aims to make foreign products cost more. This strategy should boost demand for items made in America. European Union countries already faced threats of 20 percent tariffs that later jumped to 50 percent. Japan might see 35 percent taxes on its exports to America. Britain and America have hammered out a partial trade agreement covering cars, beef, and bioethanol but not steel products.
Trump previously talked about a 10 percent baseline tariff with a 50 percent maximum rate. The new announcement shows much higher potential taxes on foreign goods coming into America. The president kept quiet about which countries will face these duties and whether the taxes will target specific products. Import taxes get paid by companies bringing goods into the country. These businesses usually pass the extra costs along to American shoppers.
The White House wants more cash flowing into government coffers and aims to make foreign products cost more. This strategy should boost demand for items made in America. European Union countries already faced threats of 20 percent tariffs that later jumped to 50 percent. Japan might see 35 percent taxes on its exports to America. Britain and America have hammered out a partial trade agreement covering cars, beef, and bioethanol but not steel products.
