President Trump announced that the U.S. will begin unilaterally notifying trading partners of a new round of tariffs ahead of the looming July 9 deadline to finalize trade agreements. UBS told clients Friday morning that the move “signals trade deal delays,” and the resulting negative sentiment sent U.S. equity futures lower. European stocks also tumbled, reflecting growing concerns over renewed trade tensions.
Trump told reporters that “10 or 12” letters would be sent out on Friday, with additional letters to follow “over the next few days.”
“By the ninth, they’ll be fully covered,” the president said, referring to the deadline he set for countries to strike deals or face steep import duties. “They’ll range in value from maybe 60 or 70% tariffs to 10 and 20% tariffs,” he added.
The new tariffs, effective August 1, mark a shift away from negotiations toward a more aggressive, unilateral approach, as only the UK and Vietnam have struck deals during a 90-day pause. China and the U.S. recently reached a trade truce to avoid a tit-for-tat escalation of tariffs.
Trump noted that “a couple of other deals” were in progress and said others would face unilateral treatment. “My inclination is to send a letter out and say what tariffs they are going to be paying,” he said, adding, “It’s much easier.”
🚨🇺🇸 TRUMP: NEW TARIFF LETTERS GO OUT TOMORROW
“We’re going to start sending letters out to various countries starting tomorrow.
There will probably be 10 or 12 go out, with tariffs ranging from 10 or 20 percent up to 60 or 70 percent.
It’s a lot of money for the country,… https://t.co/uLhqC9Yo1u pic.twitter.com/boHyuyGd8K
— Mario Nawfal (@MarioNawfal) July 4, 2025
Commenting on the news, UBS analyst Joe Dickinson told clients that the tariff letters “signaled trade deal delays,” stoking investor concerns:
U.S. President Trump said that “10 or 12” letters would go out Friday, with additional letters coming “over the next few days” to trading partners detailing unilateral tariffs. It appears as though this is an extension of the July 9 negotiation deadline in some respects, given Trump stated that the effective date for said tariffs would be August 1. A small disappointment for markets to not see momentum in deals following the US-Vietnam announcement earlier this week. Another negative in Trump’s comments is that the referenced tariff rates were “60 or 70% tariffs to 10 and 20% tariffs”, with the highest levels exceeding the top end of the Liberation Day announcements. Elsewhere, the U.S. house passed Trump’s big tax and spending cuts bill.
EStoxx slips 40bp to start on Friday with broader equity markets easing from Thursday’s highs (S&P/Nasdaq futures down 20-30bp). Markets is Asia are rangebound at a headline level with U.S. equity and bond market closures on the day. HK/China stocks continue to trade heavily.
Last month, we reported that U.S. tariff revenue for May soared to a record $22 billion. By July, even left-leaning corporate media were forced to acknowledge that the tariffs are having a positive effect, as government revenues continue to surge.
Related:
According to the latest from Goldman, annualized U.S. tariff revenue is now projected to…
US tariff revenue annualized pic.twitter.com/7kFMFmadjv
— zerohedge (@zerohedge) July 4, 2025
This figure will continue to climb in the months ahead if countries do not solidify trade deals with Trump.
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