Trump threatens to escalate trade war with new round of tariffs up to 50%

New York Post

3 days ago

President Donald Trump said he will impose tariffs ranging from a minimum rate of 15% to a clip as high as 50% as his Aug. 1 deadline looms.
'We'll have a straight, simple tariff of anywhere between 15% and 50%,' Trump said Wednesday at an artificial intelligence summit in Washington, DC.
Trump's latest tariff salvo was aimed at countries that have not yet secured bilateral trade frameworks with Washington.
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4 President Donald Trump said Wednesday that his administration is preparing to impose a new round of tariffs ranging from a minimum rate of 15% to a clip as high as 50%.
REUTERS
While some nations are actively negotiating to lower their rates, Trump emphasized that he intends to apply a 'very, very simple tariff for some of the countries,' citing the logistical challenge of negotiating individual deals with over 150 nations.
'You can't negotiate deals with everyone,' Trump said.
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He added that negotiations with the European Union were 'serious' and tied potential reductions in tariffs to increased access for American businesses.
'If they agree to open up the (EU) to American businesses, then we will let them pay a lower tariff,' Trump said.
The markets were mixed Thursday, with the Dow Jones Industrial Average falling 164 points, or 0.36%, to 44,846.29 as of noon.
The S&P 500 rose 13.68 points, or 0.22%, to 6,372.59, while the Nasdaq gained 43.05 points, or 0.21%, to reach 21,063.06.
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4 Trump laid out his latest tariff plans, describing them as 'reciprocal' duties ahead of an Aug. 1 deadline.
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Trump's comments mark a shift from statements when he initially proposed a universal tariff of 10% on nearly every country during his 'Liberation Day' rollout in April.
While his team has previously floated rates between 10% and 15%, Wednesday's remarks indicate that the baseline is now expected to begin at 15%, with significantly higher rates for countries with strained relations with the US.
Commerce Secretary Howard Lutnick said Sunday that smaller nations — including 'the Latin American countries, the Caribbean countries, many countries in Africa' — would face a baseline tariff of 10%.
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Despite initial expressions of interest in formal trade agreements, Trump has recently suggested that the letters themselves constitute a form of dealmaking. Still, countries may reduce their rates through side agreements.
4 Trump's tariff initiative, which he began rolling out in April, is aimed at countries that have not yet secured bilateral trade frameworks with Washington.
REUTERS
On Tuesday, the White House announced that Trump had agreed to reduce a proposed 25% tariff on Japan to 15%. The reduction was made in exchange for Japan lifting certain restrictions on US products and pledging $550 billion in US investments.
A similar deal is reportedly under discussion with South Korea, according to people familiar with the matter. That country is also working toward securing a 15% tariff rate, including on automobiles.
In Southeast Asia, the Philippines is also seeking to lower its rate.
According to the country's ambassador to the US, Jose Manuel Romualdez, the Philippines hopes to bring down its current tariff rate from 19% to 15%.
Vietnam, another country weighing its options, is assessing the possible consequences of not securing a trade agreement. An internal Vietnamese government estimate projects that its exports to the US could fall by as much as one-third if higher tariffs take effect.
4 An aerial view of a container shipped docked at the Port of Oakland on May 20.
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India and members of the European Union are also pushing for trade agreements before the new tariffs are enacted. As the deadline nears, multiple governments are working to either strike a deal or gauge the economic impact of the proposed levies.
Trump's increasingly firm stance on tariffs suggests a broader strategy to use trade policy as a lever for international concessions.
With the Aug. 1 implementation date fast approaching, the administration is signaling that countries will either accept the new terms or negotiate quickly to avoid higher costs.