Trump escalates trade push with 70% tariff threat, letter blitz
The US is set to begin sending tariff letters to trading partners this Friday, signaling a dramatic escalation in trade tensions just days before the July 9 deadline.

The US will issue unilateral tariff notices to over 10 countries starting Friday, with rates between 10% and 70%.
Nations must reach deals with Washington by July 9 to avoid the full weight of duties, which take effect August 1.
Trump's move aims to pressure reluctant partners as talks stall, with Japan and the EU still uncommitted.
Financial markets eye broader inflation risks and disruptions to global supply chains if tariffs are enforced.
Unilateral tariff rollout begins Friday
President Donald Trump confirmed that the US will begin dispatching tariff letters to its trading partners on Friday, detailing new unilateral duty rates that are expected to range between 10% and 70%. The move marks a significant escalation in Washington’s trade strategy, as countries scramble to secure deals ahead of the self-imposed July 9 deadline.
Trump stated that “10 or 12” countries will receive their notices this week, with more letters to follow. “By the ninth, they’ll be fully covered,” he added. The new tariffs are scheduled to take effect August 1. While details remain scarce, Trump emphasized that the funds would begin flowing into US coffers from that date.
The highest proposed rates—up to 70%—exceed the original 50% ceiling outlined in April’s “Liberation Day” announcement, and suggest a tougher enforcement phase is imminent. These levels, if implemented, would represent some of the most aggressive tariff actions taken by the US in modern history.
Trade partners scramble to respond
The accelerated timeline adds urgency for countries still in negotiation limbo. While the US has secured recent deals with the UK and Vietnam—albeit under terms that still impose significant tariffs—other key partners including Japan, South Korea, and the European Union have yet to finalize terms.
Trump’s tone toward Japan has turned particularly hawkish, accusing Tokyo of being a “difficult” partner and warning that duties in the range of 30–35% may be imposed. A similar warning has been extended to India, although talks with New Delhi are said to be progressing.
The Vietnam deal, announced Wednesday, will impose a 20% tariff on Vietnamese exports and a 40% rate on transshipped goods—those routed through Vietnam from third countries like China. While lower than the previously threatened 46%, the measures remain well above the temporary 10% blanket rate.
Political pressure builds at home and abroad
Trump’s tariff maneuver comes as he seeks to bolster his domestic standing and redefine US trade relations ahead of the November 2025 elections. The White House has framed the measures as “reciprocal tariffs,” intended to level the playing field after decades of imbalanced trade.
Treasury Secretary Scott Bessent confirmed Thursday that final decisions will rest with the president, noting that extensions are unlikely. “He’ll be the one to determine whether they’re negotiating in good faith,” Bessent told CNBC.
Yet critics warn that the sharp increase in tariffs risks undermining global trade flows, inflaming inflationary pressures, and creating new headwinds for manufacturers and consumers alike. Businesses have voiced concern about uncertainty around which goods and countries will be affected, with no public term sheets yet released.
Market implications
Markets are closely monitoring the rollout for signs of how aggressively the US will enforce the tariffs—and whether exemptions will be granted under last-minute deals. Equity markets showed muted reaction on Thursday, but trade-sensitive sectors remain vulnerable to volatility.
The tariff announcements also intersect with broader monetary policy concerns. With inflation already impacted by earlier duties, the Federal Reserve has warned that further trade disruptions could complicate its policy path.
As the July 9 deadline approaches, pressure is mounting across global capitals. If no broad compromises are reached, August 1 could mark the beginning of a new and more destabilizing phase in the global trade war.