Trade tensions rise as President Trump threatens more tariffs
WASHINGTON (NEXSTAR) - President Donald Trump started sending out letters Monday to U.S. trading partners to inform them of new tariff rates they will soon have to pay.
Even though he pushed a deadline for deals to Wednesday, President Trump announced another delay, saying the tariffs now will not take effect until next month.
"Those countries continue to negotiate with the United States," said White House Press Secretary Karoline Leavitt during Monday's briefing.
Leavitt said the first letters went to Japan and South Korea, notifying them of a new 25 percent tariff rate if they do not reach a deal by Aug. 1. She said 12 other countries will receive letters throughout the week.
"So the reciprocal tariff rate or these new rates that will be provided in this correspondence to these foreign leaders will be going out the door within the next month," Leavitt said.
President Trump promised 90 deals in 90 days back in April, but right now, his administration has only announced trade agreements or frameworks with China, the United Kingdom and Vietnam.
"It was always going to be a stretch as to how the U.S. could negotiate with over 150 countries," said Dr. Linda Yueh, an Oxford University fellow in economics.
Economists said the president's strategy aims to provide more wiggle room for negotiations rather than actual steep tariffs.
"My sense is that he wouldn't actually want to see them implemented," said Dr. Michael Plouffe, an associate professor of international political economy at UCL.
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Plouffe and Yueh said that's because the costs ultimately get passed on to consumers.
"The immediate impact is probably going to be pricier things you buy abroad and probably not a lot of domestic options to switch to straight away," Yueh said.
The White House said it could announce more trade agreements Wednesday.