Trump threatens 50 per cent tariffs in new letters
The latest recipients include the Philippines, Sri Lanka, Moldova, Brunei, Algeria, Libya, and Iraq, with new tariffs set to take effect August 1 unless trade deals are reached.
Australia continues to face a 10 per cent baseline tariff on most exports to the US, which Prime Minister Anthony Albanese recently said is likely to remain in place.
The White House letter to Brazil's President Lula da Silva sharply criticised the trial of former President Jair Bolsonaro, calling it a 'witch hunt' and an 'international disgrace.'
Mr Trump also warned that, starting August 1, all Brazilian products entering the US will face a new 50 per cent tariff, unless manufactured within the United States.
During a White House meeting with African leaders, he remarked, 'Brazil as an example, has been not good to us. Not good at all. We're going to be releasing a Brazil number, I think, later on, this afternoon or tomorrow morning.'
The new rates for Sri Lanka, Moldova, Iraq, and Libya are lower than those announced in April, while the Philippines and Brunei face higher rates. Algeria's rate remains at 30 per cent.
According to the US Commerce Department, the US imported $29 billion worth of goods from these seven nations last year, less than 1 per cent of total US imports.
US stocks were little changed following Mr Trump's announcement. The Dow rose 50 points (0.11 per cent), the S&P 500 gained 0.25 per cent, and the Nasdaq was up 0.58 per cent.
Since April, the US has been negotiating new trade agreements with various partners, but few deals have been finalised.
On Tuesday, Mr Trump said, 'a letter means a deal.' However, some countries do not see the letters as binding agreements.
In his letters, Mr Trump cited concerns about trade deficits and policies that he believes hinder US exports. He encouraged leaders to manufacture goods in the US to avoid tariffs, and warned that any retaliatory tariffs would lead him to increase US tariffs further.
Mr Trump has now sent 21 tariff letters to world leaders this week, with more expected. The 25 per cent tariffs threatened for Japan and South Korea could have the biggest impact on US consumers, as those countries are major sources of imports.
The original deadline for trade deals was Wednesday at 12.01 a.m. ET, but Trump extended it to August 1.
On Tuesday, Mr Trump announced plans to impose tariffs of up to 200 per cent on pharmaceutical imports to the United States, a move that could seriously impact Australia's $2.1 billion annual pharmaceutical exports to the US.
Australia is 'urgently seeking' more detail on the proposed tariffs, with Treasurer Jim Chalmers calling the development 'very concerning'.
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