U.S. President Donald Trump has finalized tariff notifications for seven smaller trade partners, moving closer to a trade agreement with the European Union. Trump announced via his Truth Social media platform that effective August 1st, tariffs of 20% on goods from the Philippines, 30% on goods from Sri Lanka, Algeria, Iraq, and Libya, and 25% on goods from Brunei and Moldova will be imposed. The EU did not receive a tariff notification, but Trump had previously mentioned the issuance of “a minimum of seven” tariff notices on Wednesday.
These new notifications complement the 14 others sent earlier, which included 25% tariffs on major U.S. suppliers South Korea and Japan, set to be enforced from August 1st unless deals are made before then. Following his decision to levy a 50% tariff on imported copper and plans for tariffs on semiconductors and pharmaceuticals, Trump’s rapid tariff actions are causing uncertainty in global economic forecasts, impacting business strategies.
Negotiations with the EU and China are progressing positively, according to Trump, with the EU being the primary U.S. trading partner. Trump indicated that he will likely inform the EU of the expected tariff rates for its exports within two days, emphasizing the EU’s enhanced cooperation in recent times. EU trade chief Maroš Šefčovič expressed optimism about finalizing a trade agreement framework swiftly, particularly as the U.S. extended the deadline from July 9 to August 1.
Despite Trump’s recent tariff announcements, financial markets remained stable, with the yen weakening post-Japan tariffs. The Yale Budget Lab estimated that U.S. consumers now face an effective tariff rate of 17.6%, the highest in nearly 90 years. The Trump administration views these tariffs as a significant revenue stream, with Treasury Secretary Scott Bessent stating that around $100 billion USD has been collected, potentially reaching $300 billion USD by year-end.
Critics, including Massachusetts Governor Maura Healey, a Democrat, have condemned Trump’s trade policies, labeling them a “failed trade war” that raises prices and harms businesses. Despite the administration’s pledge of “90 deals in 90 days,” only agreements with Britain and Vietnam have been sealed so far, with ongoing discussions with India.
