Trump eyes simple tariff rates over complex talks, says letters going out Friday
Acknowledging the complexity of negotiating with over 170 nations, Trump told reporters before departing for Iowa on Thursday that the letters will be sent to 10 countries at a time, laying out tariff rates such as 20% to 30%.
"We have more than 170 countries, and how many deals can you make?" Trump said. "They're very much more complicated."
The Republican president said he expected "a couple" more detailed agreements with other countries after Wednesday's announcement of a trade deal with Vietnam.
However, he said he preferred to notify most other countries of a specific tariff rate, skipping detailed negotiations.
Trump's comments underscored the challenges of completing trade agreements on everything from tariffs to non-tariff barriers such as bans on agricultural imports.
Top Trump aides said in April they would work on 90 deals in 90 days, an ambitious goal that was met with skepticism from trade experts familiar with arduous and time-consuming trade deals of the past.
Treasury Secretary Scott Bessent told Bloomberg Television that about 100 countries are likely to see a reciprocal tariff rate of 10% and predicted a "flurry" of trade deals announced before a July 9 deadline when tariffs could rise sharply.
If 10% tariffs were given to 100 countries, that would be fewer than originally envisioned by the Trump administration.
Its original reciprocal tariff list showed 123 jurisdictions that would be given a 10% tariff rate - mostly small countries, along with some territories such as Australia's uninhabited Heard and McDonald Islands.
Trump sent markets into a tailspin on April 2 with sweeping reciprocal tariff rates ranging from 10% to 50%, although he temporarily reduced the tariff rate for most countries to 10% to allow time for negotiations through July 9.
Many countries with an initial 10% duty rate have not had any negotiations with the Trump administration, with the exception of Britain, which reached a deal in May to keep a 10% rate and won preferential treatment for some sectors including autos and aircraft engines.
Major trading partners now involved in negotiations were hit with much higher tariff rates, including 20% for the European Union, 26% for India and 24% for Japan. Other countries that have not engaged in trade talks with the Trump administration face even higher reciprocal tariffs, including 50% for the tiny mountain kingdom of Lesotho, 47% for Madagascar and 36% for Thailand.
Trump on Wednesday announced an agreement with Vietnam that he said US products would be allowed to enter Vietnam duty free.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bangkok Post
38 minutes ago
- Bangkok Post
Vietnam Q2 GDP growth quickens on strong exports, US trade deal brightens outlook
HANOI - Vietnam's economy grew at a faster pace in the second quarter of this year led by strong exports, in an encouraging sign just days after US President Donald Trump said he would place lower-than-threatened 20% tariffs on many Vietnamese products. Concerns over the Southeast Asian manufacturing hub's outlook had been growing in the run up to the trade deal announced on Wednesday, particularly as the United States is Vietnam's biggest export market. Gross domestic product growth in the April-June quarter accelerated to 7.96% year-on-year, from the 6.93% in the first quarter, government data showed on Saturday. It was just short of Hanoi's full-year growth target of at least 8%. "Economic performance in the first half of this year was positive and close to our target amid global and regional economic uncertainties," the National Statistics Office said. Exports were a bright spot in the last quarter, rising 18.0% to $116.93 billion from a year earlier, while imports were up 18.8% at $112.52 billion, translating into a trade surplus of $4.41 billion, the NSO data showed. Industrial production in the period rose 10.3%, while June consumer prices rose 3.57%. Trump announced on Wednesday the US and Vietnam reached a trade deal, under which Vietnamese goods would face a 20% tariff, with trans-shipments from third countries through Vietnam also facing a 40% levy. Vietnam could import US products with a zero percent tariff. The tariff rates were lower than an initial 46% rate threatened by Trump in April. Vietnam hailed the deal as a boost for business and said negotiators were working to finalise details, as business groups awaited clarity on the finer points to assess the impact of the new tariffs. The US is the largest export market for Vietnam, a regional manufacturing hub housing several multinational companies such as Samsung Electronics and Foxconn. The US recorded a trade deficit of $123 billion with Vietnam last year, one of its highest globally. Vietnam is also home to several Chinese companies, which analysts said are likely the main targets for the 40% tariff on trans-shipments. China is Vietnam's largest two-way trading partner on which it relies heavily for components and materials for its manufacturing industries. Fitch Solutions said in a note on Friday that Vietnam's exports and investment will remain strong for the rest of the year and signalled upside risks for its 2025 GDP growth forecast of 6.4%. "With the new 20% tariff, we think the government will speed up industrial upgrading and shift exports from low-margin goods to higher value-added products such as semiconductors," it said in a note. Dominic Scriven, founder and chairman of investment firm Dragon Capital, said the trade deal is "net-positive" and the potential GDP hit is less severe than feared.
Bangkok Post
4 hours ago
- Bangkok Post
Traders cautious as US tariff deadline nears
RECAP: Asian investors turned cautious on Friday as the July 9 deadline to avert steep US tariffs approached with very few trade deals concluded. President Donald Trump indicated that dozens of trading partners could simply get letters next week informing them of their rates. The SET index moved in a range of 1,080.92 and 1,128.07 points this week, before closing yesterday at 1,119.94, up 3.5% from the previous week, with daily turnover averaging 33.75 billion baht. Institutional investors were net buyers of 3.83 billion baht, followed by brokerage firms at 301.46 million. Retail investors were net sellers of 2.73 billion baht, followed by foreign investors at 1.40 billion. NEWSMAKERS: The US and Vietnam agreed on a trade deal in which tariffs of 20% will apply to Vietnamese-origin goods and 40% on transshipped goods. In return, Vietnam will grant total market access to US goods by applying a zero tariff rate. Economists say Vietnam's trade deal with the US is a wake-up call for Asian governments grappling with the reality that higher tariffs are here to stay. Trump has threatened to impose a 30% or 35% tariff on Japan if a deal between the two countries is not reached before Wednesday's deadline. That would be well above the 24% rate announced on "Liberation Day" on April 2. Trump said an upcoming trade deal between India and the US is going to be of a "different kind" with "much less tariffs". The US House approved Trump's landmark "big beautiful" tax and spending bill, setting the stage for Trump to sign it on the Independence Day holiday, July 4. Trump supports a Senate bill that would impose tariffs as high as 500% on China and India if they import oil from Russia, aimed at pressuring President Vladimir Putin to enter negotiations with Ukraine. Federal Reserve chairman Jerome Powell said interest rates probably would have been lower by now if Trump had not announced tariffs, which forced the Fed to delay easing as tariffs can significantly raise inflation. Trump threatened to cut off billions of dollars in subsidies that Elon Musk's companies receive from the US government, in an escalation of the war of words between the president and the world's richest man, one-time allies who have since fallen out. Multiple news outlets report that the US has lifted export restrictions on chip design software to China, seen as an important sign of easing trade tensions. US non-farm payrolls increased by 147,000 in June, higher than market expectations, while the unemployment rate fell to 4.1%, reflecting a strong labour market that eases concerns about a recession. Markets still expect the Fed to cut rates twice more this year, in September and December. European Central Bank (ECB) policymakers are concerned that the appreciation of the euro could weigh on exports and drag inflation down further, minutes from their June meeting showed. The US manufacturing purchasing managers' index (PMI) expanded for the sixth consecutive month in June, rising to 52.9, the highest since May 2022, supported by increases in new orders and employment. The US consumer confidence index also improved from the previous month to 60.7, higher than market expectations. Japan's tax revenues hit a record ¥75.2 trillion ($524 billion) in the fiscal year ended March 31, surpassing government forecasts by ¥1.8 trillion. India's manufacturing PMI for June rose to 58.4, the highest in 14 months, from 57.6 in May, driven by strong exports. South Korea reported that June exports increased more than expected by 4.3% year-on-year due to strong global demand for semiconductors. Semiconductor exports rose by 11.6% to a record high of $14.97 billion. Microsoft is laying off as many as 9,100 employees, or 4% of its workforce, the Seattle Times reported, with big cuts in its gaming division as it seeks to control costs. ♦Opec+ is expected to accelerate oil production for the fourth straight month in August, adding another 411,000 barrels per day, despite recent price decline after the Israel-Iran ceasefire, as global oil demand is still viewed as robust. Hong Kong is expected to lead the world in IPOs this year despite uncertainty from geopolitical tensions and trade tariffs, PwC said. The Chinese financial hub has rebounded strongly this year, with dozens of Chinese companies piling in to raise overseas capital. PwC predicted nearly 100 companies will raise at least US$25 billion in Hong Kong this year. Tesla shares jumped after the carmaker posted a less drastic decline in vehicle sales than the most pessimistic analysts feared. The company delivered 384,122 vehicles during the last three months, down 13% from a year earlier. Some investors were braced for a 20% plunge or worse. Deputy Finance Minister Julapun Amornvivat cautioned that Thailand's trade negotiations with the US are unlikely to conclude before Tuesday's deadline, as the team led by Finance Minister Pichai Chunhavajira was unable to reach a conclusion with the US Trade Representative in talks this week in Washington. Thailand has a new acting prime minister, Phumtham Wechayachai, and 13 new ministers after a reshuffle that happened to coincide with a Constitutional Court ruling to suspend PM Paetongtarn Shinawatra pending a ruling on her ethics case. Ms Paetongtarn is still in the cabinet, as culture minister, as she prepares her defence against allegations related to her handling of a phone call with former Cambodian premier Hun Sen. The court is expected to take 1-2 months to reach a final decision. The World Bank has reduced its economic growth forecast for Thailand to 1.8% for this year and 1.7% for 2026, citing mounting global and domestic challenges. The projections mark a downgrade from earlier forecasts of 2.9% and 2.7%, respectively. Thailand recorded GDP growth of 2.5% last year. The Investment Analysts Association downgraded its Thai GDP growth forecast for 2025 to 1.87%, from 2.56% in the previous quarter. The SET index is forecast to finish the year at 1,231 points. The Ministry of Tourism and Sports on Friday shut down the online registration system for the much-hyped "We Travel Together" travel subsidy scheme because of repeated problems that led to crashes. Repairs may take a few days. The Tourism Authority of Thailand had been counting on the 1.76-billion-baht programme to generate tourism revenue of 35 billion baht from July 4 to Oct 31. Foreign tourist arrivals from Jan 1 to June 29 fell 4.6% from the same period a year earlier, the tourism ministry said. Of the 16.6 million visitors, Malaysia was the largest source country with 2.29 million, followed by China with 2.25 million. Long-term corporate bond issuance in the first half of 2025 dropped by 19.3% year-on-year, totalling 399 billion baht, the Thai Bond Market Association (ThaiBMA) said. Foreign investors were net buyers of Thai bonds, totalling 32.3 billion baht. The ThaiBMA said most market participants expect the Bank of Thailand to cut its policy interest rate once more in the final quarter of 2025, from 1.75% to 1.50%. Thailand's Manufacturing Production Index in May expanded 1.9% year-on-year to 100.79, with the automotive industry growing 12.9%, reflecting motor show bookings, economic stimulus and lower interest rates. The cabinet has extended registrations for debt relief measures until Sept 30 from the original June 30 deadline. Conditions were also revised to provide broader coverage. COMING UP: On Monday, euro zone finance ministers meet and Japan releases current account data. On Tuesday, Australia and New Zealand announce interest rate decisions. On Wednesday, The US reports crude oil inventories and the Fed releases minutes of its last meeting. On Thursday, the US announces initial jobless claims. On Friday, the UK reports monthly GDP, Germany announces monthly inflation and the International Energy Agency releases its monthly oil market report. Locally, the SET on Monday holds a briefing on market trading ion June. On Wednesday, Finnomena discusses the fund market outlook for the second half of 2025. STOCKS TO WATCH: Asia Plus Securities (ASPS) says heightened volatility in the Thai stock market has caused capital to flow into the bond market as a safe haven. However, if stock market conditions stabilise, there is a strong possibility that funds could flow back into equities. The brokerage notes that with the SET index hovering around 1,100 points, the market yield gap has widened to 6.25% and the dividend yield gap has reached nearly 3%, making equities attractive from a risk premium standpoint. It recommends high-dividend stocks that show signs of recovery including SIRI (11% yield), ITC (9%), M (9%), AP (8.9%), LH (8.8%), KKP (8.4%), TU (7%) and KTC (5%). InnovestX Securities says investors should focus on the fact that the US intends to unilaterally impose tariff rates on dozens of trading partners if they cannot reach deals by the July 9 deadline. Its top stock picks include PTT at a target price of 41 baht, CPALL (68 baht) and CBG (70 baht).
Bangkok Post
13 hours ago
- Bangkok Post
US plans AI chip curbs on Malaysia, Thailand over China concerns
US President Donald Trump's administration plans to restrict shipments of AI chips from the likes of Nvidia Corp to Malaysia and Thailand, part of an effort to crack down on suspected semiconductor smuggling into China. A draft rule from the Commerce Department seeks to prevent China — to which the US has effectively banned sales of Nvidia's advanced AI processors — from obtaining those components through intermediaries in the two Southeast Asian nations, according to people familiar with the matter. The rule is not yet finalised and could still change, said the people, who requested anonymity to discuss private conversations. Officials plan to pair the Malaysia and Thailand controls with a formal rescission of global curbs from the so-called AI diffusion rule, the people said. That framework from the end of President Joe Biden's term drew objections from US allies and tech companies, including Nvidia. Washington would maintain semiconductor restrictions targeting China — imposed in 2022 and ramped up several times since — as well as more than 40 other countries covered by a 2023 measure, which Biden officials designed to address smuggling concerns and increase visibility into key markets. All told, the regulation would mark the first formal step in Trump's promised overhaul of his predecessor's AI diffusion approach — after the Commerce Department said in May that it would supplant that Biden rule with its own 'bold, inclusive strategy.' But the draft measure is far from a comprehensive replacement, the people said. It doesn't answer, for example, questions about security conditions for the use of US chips in overseas data centres — a debate with particularly high stakes for the Middle East. It's unclear whether Trump officials may ultimately regulate AI chip shipments to a wider swath of countries, beyond the Malaysia and Thailand additions. The Commerce Department didn't respond to a request for comment. The agency has offered few specifics about its regulatory vision beyond what Secretary Howard Lutnick told lawmakers last month: The US will 'allow our allies to buy AI chips, provided they're run by an approved American data centre operator, and the cloud that touches that data center is an approved American operator,' he said during congressional testimony. Nvidia, the dominant maker of AI chips, declined to comment, while spokespeople for the Thai and Malaysian governments didn't respond. Nvidia Chief Executive Officer Jensen Huang has previously said there's 'no evidence' of AI chip diversion, in general remarks that didn't touch on any particular country. In response to earlier Bloomberg queries about curbs focused on smuggling risks, Thailand said it's awaiting details, while Malaysia's Ministry of Investment, Trade and Industry said clear and consistent policies are essential for the tech sector. Washington officials for years have debated which countries should be able to import American AI chips — and under what conditions. On one hand, the world wants Nvidia hardware, and US policymakers want the world to build AI systems using American technology — before China can offer a compelling alternative. On the other, once those semiconductors leave American and allied shores, US officials worry the chips could somehow make their way to China, or that Chinese AI companies could benefit from remote access to data centers outside the Asian country. Southeast Asia is a key focus. Companies including Oracle Corp are investing aggressively in data centres in Malaysia, and trade data shows that chip shipments there have surged in recent months. Under pressure from Washington, Malaysian officials have pledged to closely scrutinise those imports, but the Commerce Department's draft rule indicates the US still has concerns. Semiconductor sales to Malaysia also are a focal point of a court case in neighboring Singapore, where prosecutors have charged three men with defrauding customers about the ultimate destination of AI servers — originally shipped from the island nation to Malaysia — that may have contained advanced Nvidia chips. (Nvidia is not the subject of Singapore's investigation and has not been accused of any wrongdoing. The export curbs on Malaysia and Thailand would include several measures to ease pressure on companies with significant business operations there, people familiar with the matter said. One provision would allow firms headquartered in the US and a few dozen friendly nations to continue shipping AI chips to both countries, without seeking a license, for a few months after the rule is published, people familiar with the matter said. The license requirements also would still include certain exemptions to prevent supply chain disruptions, the people said. Many semiconductor companies rely on Southeast Asian facilities for crucial manufacturing steps like packaging, the process of encasing chips for use in devices.
