Tuesday saw additional tariff pronouncements from the Trump administration, which a day earlier had pledged import duties of 25% to 40% beginning on August 1 in letters to 14 trading partners.
According to U.S. Commerce Secretary Howard Lutnick, “a general letter” that would encompass nations that did not receive their own tariff letters would be sent out after another round of tariff letters. He said that the increased levies would still go into force on August 1.
“You should expect another anywhere from 15 to 20 letters to go out over the next two days – really setting down tariff lines for the key, driving countries, and then we’ll set out a general letter to the balance, sort of setting out where they’re going to be,” Lutnick stated in an interview with CNBC.
In a social media tweet earlier Tuesday, Trump stated that additional tariff letters “will be sent today, tomorrow, and for the next short period of time.” Additionally, he stated that no extensions will be given past his deadline of August 1st, but he did indicate some flexibility on Monday night when he stated that it was “firm but not 100% firm.”
Trump also stated on Tuesday that his administration was “probably two days off” from notifying the European Union of a tariff rate. According to the president, EU officials “treated us very badly until recently – now they’re treating us very nicely,” he told reporters.
This month, a copper tariff might go into force.
Lutnick and Trump also pledged on Tuesday to slap a 50% duty on copper imports, which would be equivalent to the import taxes they have already placed on steel and aluminum. During a cabinet meeting, Trump announced the hefty tariff on copper (HG00). In his CNBC interview, Lutnick provided additional information, stating that the levy is expected to be implemented by “the end of July, maybe Aug. 1.”
Lutnick stated, “You’ll see the president will Truth about it this afternoon,” alluding to a post that will be published on Trump’s Truth Social platform soon. “He’ll sign a proclamation as that goes through the ordinary legal process within a day or two days.”
Because the necessary investigations have been going on for weeks or months, it has appeared that the Trump administration will impose tariffs on a variety of industries, including copper and medicines. Lutnick said that the copper probe was finished and given to the president.
“With pharmaceuticals PJP and semiconductors SMH, those studies are being completed at the end of the month, and so the president will then set his policies then,” stated the head of the Commerce Department. Trump had stated earlier Tuesday that imported medications could be “tariffed at a very, very high rate, like 200%,” but that pharmaceutical companies would have 12 or 18 months to move their production in-house.
Top Trump administration officials will meet with their Chinese counterparts in early August to discuss trade, Lutnick told CNBC, adding that the meeting would focus on “beginning the process of having a bigger conversation” about trade.
Tuesday’s close was largely negative for the major U.S. stock indexes, SPX and DJIA.
