Check Call: Tariffs pushed again

July 9 was supposed to be the day that reciprocal tariffs went into effect. The tariffs announced on Liberation Day were put on a 90-day hold shortly after being announced. The original tariffs ranged anywhere from 10%-145% depending on the trading partner. 

Monday President Trump signed an executive action Monday to extend the date for all “reciprocal” tariffs, with the exception of China, to August 1. Trump sent letters to some of the U.S. trading partners. The letters specify new “reciprocal” tariff rates that are higher or lower compared to April levels.

The letters detail new tariff levels, ranging from 25% to as high as 40%, for countries including Bangladesh, Cambodia, and Japan. The tariffs will take effect unless bilateral trade agreements are finalized before the August deadline. Some countries, such as Canada, are in ongoing negotiations, while others (like China, Vietnam, and the United Kingdom) have already reached deals and avoided steeper penalties. For example, the U.S.-China agreement capped American tariffs at 55%, while Chinese tariffs were limited to 10%.

In all 14 letters, Trump threatened to raise tariffs even higher than the specified rates if a country retaliated against the United States with tariffs of its own. Trump said these rates would be “separate from all Sectoral Tariffs,” meaning, for instance, the new tariff won’t be stacked on top of the current auto tariff of 25%, the White House confirmed. That would apply to any future sector-specific tariffs, too, a White House official said.