Trump issues new tariff notices as EU pushes for US trade deal

Straits Times

09-07-2025

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US President Donald Trump issued tariff notices to the Philippines, Sri Lanka, Algeria, Iraq, Libya, Brunei and Moldova on July 9.
WASHINGTON/BRUSSELS - US President Donald Trump issued final tariff notices to seven minor trading partners on July 9 as his administration inched closer to a deal with its biggest trading partner, the European Union.
Mr Trump said in posts on his Truth Social media platform that starting Aug 1 he would impose a 20 per cent tariff on goods from the Philippines, 30 per cent on goods from Sri Lanka, Algeria, Iraq, and Libya, and 25 per cent on Brunei and Moldova.
No letter was issued to the EU, but Mr Trump had said late on July 8 that he would issue 'a minimum of seven' tariff notices on the morning of July 9 and more in the afternoon.
The latest letters add to
14 others issued earlier in the week including 25 per cent tariffs for powerhouse US suppliers South Korea and Japan, which are also to take effect Aug 1 barring any trade deals reached before then.
They were issued a day after Mr Trump said he was broadening his trade war by
imposing a 50 per cent tariff on imported copper and would soon introduce long-threatened levies on semiconductors and pharmaceuticals. Mr Trump's rapid-fire tariff moves have cast a shadow over the global economic outlook, paralysing business decision-making.
Negotiations with the EU
Mr Trump said trade talks have been going well with China and the European Union, which is the biggest bilateral trading partner of the US.
Mr Trump said he would 'probably' tell the EU within two days what rate it could expect for its exports to the US, adding that the 27-nation bloc had become much more cooperative.
'They treated us very badly until recently, and now they're treating us very nicely. It's like a different world, actually,' he said.
EU trade chief Maros Sefcovic said good progress had been made on a framework trade agreement and a deal may even be possible within days.
Mr Sefcovic told EU lawmakers he hoped that EU negotiators could finalise their work soon, with additional time now from the extension of a US deadline to August 1 from July 9.
'I hope to reach a satisfactory conclusion, potentially even in the coming days,' Mr Sefcovic said.
However, Italian Economy Minister Giancarlo Giorgetti had earlier warned that talks between the two sides were 'very complicated' and could continue right up to the deadline.
Highest tariff levels since 1934
Equity markets shrugged off the Republican president's latest tariff salvo on July 9, while the yen remained on the back foot after the levies imposed on Japan.
Following Mr Trump's announcement of higher tariffs for imports from the 14 countries, US research group Yale Budget Lab estimated consumers face an effective US tariff rate of 17.6 per cent, up from 15.8 per cent previously and the highest in nine decades.
Mr Trump's administration has been touting those tariffs as a significant revenue source. Treasury Secretary Scott Bessent said Washington has taken in about US$100 billion (S$128 billion) so far and could collect US$300 billion by the end of the year. The United States has taken in about US$80 billion annually in tariff revenue in recent years.
The Trump administration promised '90 deals in 90 days' after he unveiled an array of country-specific duties in early April. So far, only two agreements have been reached, with Britain and Vietnam. Mr Trump has said a deal with India was close.
Massachusetts Governor Maura Healey, a Democrat, blasted Mr Trump for his 'failed trade war'.
'President Trump was elected to lower costs, and all he is doing is raising prices and hurting our businesses,' she said in a statement. REUTERS