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US President Donald Trump on Monday announced plans to implement a “world tariff” of 15% to 20% on exports from most countries that have not signed separate trade agreements with the United States, well above the 10% baseline set in April.
Speaking alongside UK Prime Minister Keir Starmer at his Turnberry golf resort in Scotland, Trump said notifications would soon be sent to around 200 countries outlining the new default tariff rates. “I would say it’ll be somewhere in the 15 to 20% range,” Trump told reporters
The move is part of Trump’s broader strategy to eliminate America’s long-standing trade deficits. He has already unveiled tariffs of up to 50% for certain countries, with new rates for Brazil set to take effect on Friday.
The announcements have spurred feverish negotiations by a host of countries seeking lower tariff rates, including India, Pakistan, Canada, and Thailand, among others.
The US president on Sunday clinched a huge trade deal with the European Union that includes a 15% tariff on most EU goods, $600 billion of investments in the US by European firms, and $750 billion in energy purchases over the next three years.
That followed a $550-billion deal with Japan last week and smaller agreements with Britain, Indonesia, and Vietnam. Other talks are ongoing, including with India, but prospects have dimmed for many more agreements before Friday, Trump’s deadline for deals before higher rates take effect.
Impact Shorts
More ShortsTrump has repeatedly said he favours straightforward tariff rates over complex negotiations.
“We’re going to be setting a tariff for essentially, the rest of the world,” he said again on Monday. “And that’s what they’re going to pay if they want to do business in the United States. Because you can’t sit down and make 200 deals."
Canadian Prime Minister Mark Carney said on Monday trade talks with the U.S. were at an intense phase, conceding that his country was still hoping to walk away with a tariff rate below the 35% announced by Trump on some Canadian imports.
Carney conceded this month that Canada - which sends 75% of its exports to the United States - would likely have to accept some tariffs.
With inputs from agencies