Trump’s Tariff Ultimatum: Some Nations Secure Deals, Others Face Tough Choices

As the clock ticks toward the end of a 90-day pause on reciprocal tariffs, United States President Donald Trump has taken a bold new approach, sending “take it or leave it” letters to 12 nations. These letters, set to go out on Monday, July 7, outline different tariff rates for countries that have yet to reach a trade deal with the U.S. It’s a high-stakes move that marks a sharp turn from multilateral negotiations to a more direct, pressure-driven strategy.

Trump, frustrated by what he sees as slow progress in global trade talks, especially with partners like Japan and the European Union (EU), has decided to lay down firm terms. The letters reportedly contain tariff rates ranging from 20% to 30% on exports to the U.S., with even higher tariffs of up to 70% possible starting August 1 if no agreement is reached by the July 9 deadline.

“We tried talking, now we’re acting,” Trump told reporters, emphasizing that this strategy allows quicker decisions and fewer delays. “Sending a letter is much easier,” he added.

Winners and Losers: A Divided Global Response

While some countries are bracing for impact, others have already made their peace with Washington.

The United Kingdom wrapped up a trade deal back in May that maintains a 10% tariff rate while offering special treatment to key sectors like autos and aircraft engines. Vietnam also struck a deal, avoiding a potentially devastating 46% tariff on its goods. Under the agreement, many Vietnamese products will now face only a 20% tariff, while U.S. goods entering Vietnam will enjoy duty-free access.

However, other major players are still scrambling. Japan is actively engaging with the U.S., holding “in-depth” talks over the weekend. Despite this, no final deal has been announced. The EU is also in limbo, with diplomats confirming that negotiations have stalled.

India finds itself in a particularly tense spot. Not only has it failed to reach a deal, but it has also proposed retaliatory duties on American goods under World Trade Organization (WTO) guidelines. Indian negotiators recently returned from the U.S. without an agreement, and the country is now preparing to raise tariffs as a safeguard against potential U.S. actions.

What Comes Next

As the July 9 deadline looms, countries are left with a difficult choice: accept the terms outlined in Trump’s letter or face potentially severe economic consequences. The letters are expected to go out in batches of 10, reflecting the administration’s challenge of managing over 170 global trading relationships.

Whether this strategy leads to faster resolutions or sparks new trade wars remains to be seen. But one thing is clear: President Trump has redrawn the lines of negotiation, and the global trade community is on alert.