In just over a week, on July 9, President Trump is set to reinstate reciprocal tariffs on countries around the world. The president says he’s ready to put letters in the mail to tell countries exactly how much they will be taxed, “We made deals, but I’d rather just send them a letter, a very fair letter, saying, ‘congratulations, we’re going to allow you to trade in the United States of America, you’re going to pay a 25% tariff, or 20%, or 40 or 50%.’ I would rather do that,” Trump said on Fox News’ “Sunday Morning Futures” with Maria Bartiromo.
When asked about potentially extending that self-imposed deadline, Trump said, “I don’t think I’ll need to. I could, there’s no big deal…What I wanted to do is, and what I will do just — sometime prior to the 9th — is we’ll send a letter to all these countries…I’m going to send letters. That’s the end of the trade deal.” Using U.S. ally Japan as an example, President Trump explained the scenario to Bartiromo, “Dear Mr. Japan, here’s the story. You’re going to pay a 25% tariff on your cars.”
Something to keep in mind, according to Axios, the president guaranteed tariffs letters prior to the May 16 and June 11 tariffs, saying they would be sent in two to three weeks, but that never happened.
As of right now, the UK is the only country to have secured a trade deal with the U.S. It keeps an overall reciprocal-trade rate of 10% in place, but steel is still a sticking point, with 25% duties still being discussed. China also has a delicate truce with America that remains in place until mid-August, which should give time for negotiations between the two countries’ trade representatives to play out.
Late Sunday, Canada announced it is rescinding its digital services tax on major U.S. technology companies like Apple, Amazon and Google. This comes after Trump posted on Truth Social Friday “terminating” all trade talks with the country due to this tax.
Canadian Prime Minister Mark Carney and President Trump spoke via phone Sunday and Carney’s office said they have agreed to resume negotiations, “Today’s announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month’s G7 Leaders’ Summit in Kananaskis.”
According to Yale Budget Lab, consumers face an overall effective tariff rate of 15.8%, the highest rate since 1936, after Trump’s so-called “Liberation Day,” April 2, the day that marked significant tariff increases on imported goods.
As July 9 approaches, shippers should prepare for continued volatility. The policy environment remains fluid, with trade positions shifting quickly and presidential statements often outpacing official action. While some countries may still reach last-minute deals, others could find themselves abruptly subject to steep duties. Shippers should stay closely engaged with their trade partners and logistics providers and be ready to pivot as developments unfold. If you have any questions, don’t hesitate to reach out to your M.E. Dey representative.