The announcement follows a wave of recent tariff threats targeting foreign steel, aluminum, and automotive imports. Initially tied to a July 9 deadline, the tariff rollout has now been extended by three weeks, allowing trading partners limited time to respond. Trump said he would be open to agreements that lower the new rates but emphasized that the letters themselves serve as de facto trade deals.

“These are not big countries,” Trump remarked, referring to the targeted nations. “They don’t do that much business.” The administration’s strategy appears designed to minimize domestic market impact while generating trade concessions from weaker economies.

Markets React As Allies Scramble For Exemptions

The plan has unsettled financial markets and surprised several U.S. allies, including members of the European Union who had hoped to finalize tariff-exemption agreements. Trump’s recent rhetoric, casting the letters as “deals” rather than negotiating tools, signals a more unilateral approach and further complicates diplomatic efforts.

Analysts warn the mass notification could strain U.S. trade relations worldwide and spark retaliation or legal challenges from affected countries. Nonetheless, Trump and his team remain firm in their belief that tariff leverage is key to securing what they call “fair and reciprocal” trade.