Trump confirms up to 70% tariffs on dozens of countries, sparks trade war

In the United States, President Donald Trump announced that his administration will start sending letters to various trading partners detailing unilateral tariffs as high as 70% starting on July 9, 2025. This decision comes after a previous 90-day pause on the imposition of tariffs, which was part of Trump's effort to negotiate new trade deals. The letters, which inform the countries affected, are expected to be sent out beginning July 5, 2025, and will explain the exact tariff rates that will apply to each country, including rates ranging from 10% to as high as 70%. Trump indicated that around 10 to 12 letters would be sent out each day over the following days, targeting countries that have yet to reach a suitable trade agreement with the United States. This new tariff policy has significant implications for international trade, particularly as the U.S. has over 170 trading partners worldwide. The President stated that negotiations with numerous countries had been complex and have not yielded expected results, prompting the shift to unilateral tariffs. He emphasized that by July 9, all countries not reaching an agreement would be informed of the new tariff rates they would face. While specific countries were not disclosed, this move indicates a shift in the U.S. trade strategy that may impact global markets. The announcement led to a slump in U.S. stock futures, reflecting market uncertainty about the potential economic fallout from new tariffs. Financial analysts expressed concern that higher tariff rates might exacerbate tensions between the U.S. and its trading partners. European stock markets reportedly reacted negatively as well, suggesting that Trump's decision could have far-reaching consequences beyond the borders of the United States. Businesses and investors are left grappling with the implications of these tariffs, emphasizing the unfolding landscape of U.S. trade policy under Trump's administration. Trump's tariff initiative exemplifies his administration's broader strategy of pursuing America-first trade policies that prioritize American interests but risk igniting trade disputes. While the White House has maintained that it is open to good faith negotiations, Trump's readiness to impose significant tariffs without further negotiations raises questions about the future of international trade relations. The coming weeks will be critical in determining how countries respond to these tariffs and whether any last-minute agreements can be reached before the July 9 deadline.