Trump Sends Tariff Letters to Six More Nations, Spares EU/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump sent tariff warning letters to six smaller U.S. trading partners, signaling steep duties starting August 1. Major partners like the EU are spared for now, as negotiations continue amid global economic uncertainty. Experts warn the new tariffs could fuel inflation, though their direct economic impact remains small.
Quick Look
- Countries Targeted: Philippines, Brunei, Moldova, Algeria, Libya, Iraq
- Tariff Rates: Up to 30% starting August 1
- Major Partners Spared: EU not yet targeted in new letters
- Economic Impact: Minimal deficits, but potential inflation risks
- Next Deadline: August 1 for final trade agreements
Trump Targets Six Nations With New Tariff Threats, Spares Major U.S. Partners
Deep Look
WASHINGTON (AP) — President Donald Trump expanded his aggressive trade agenda on Wednesday, dispatching tariff warning letters to six smaller U.S. trading partners while steering clear—for now—of imposing fresh taxes on America’s major industrial allies.
The new letters went to the Philippines, Brunei, Moldova, Algeria, Libya, and Iraq, signaling Trump’s ongoing enthusiasm for using tariffs as leverage in global trade. Although these nations are not significant economic rivals, Trump’s administration sees tariffs as a tool to assert U.S. power and drive negotiations.
Economic experts warn that broad tariff hikes could add inflationary pressure and potentially slow U.S. economic growth. Yet Trump remains undeterred, viewing import taxes as a means to force concessions and showcase American economic strength.
Smaller Economies Face Tariff Hikes Starting Aug. 1
Trump’s letters outlined steep tariff increases set to begin August 1:
- Libya, Iraq, and Algeria: 30% tariff
- Moldova and Brunei: 25% tariff
- Philippines: 20% tariff
Earlier this week, Trump slapped 25% tariffs on Japan and South Korea, key U.S. trade partners. But the European Union, a frequent Trump target in trade disputes, appears temporarily spared. EU negotiators confirmed Wednesday that no tariff letter had arrived, and talks will continue until the new deadline of August 1.
Trade Imbalances Minimal Compared to U.S. Economy
- Algeria: $1.4 billion deficit
- Iraq: $5.9 billion deficit
- Libya: $900 million deficit
- Philippines: $4.9 billion deficit
- Brunei: $111 million deficit
- Moldova: $85 million deficit
Altogether, these deficits amount to mere “rounding errors” in the context of America’s $30 trillion economy.
The letters were posted to Trump’s Truth Social platform following the end of a 90-day negotiation period initially tied to a baseline 10% tariff threat. While Trump has set August 1 as the final deadline for these countries to reach trade agreements, he has insisted no further extensions will be granted.
EU Gets Temporary Reprieve, But Talks Continue
Maros Sefcovic, the EU’s chief trade negotiator, told European lawmakers in Strasbourg that the EU remains excluded from Trump’s latest tariff list. However, he noted that the extended talks until August 1 would “provide additional space to reach a satisfactory conclusion.”
Trump’s earlier threats against the EU included a proposed 20% tariff on European goods, with a possible jump to 50% if negotiations lagged. He ultimately dialed back to a 10% baseline pending ongoing discussions.
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