Trump's new tariff plan: Rates set to climb between 15% and 50% as global trade talks enter final stretch
'We'll have a straight, simple tariff of anywhere between 15% and 50%,' Trump said at an AI summit in Washington on Wednesday, as reported by Bloomberg. 'We have 50 because we haven't been getting along with those countries too well.'
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These comments confirm a sharp turn in
US trade policy
as the administration moves towards setting firm tariff rates just days before the 1 August implementation date. The announcement comes after months of back-and-forth signals, including an earlier suggestion by Trump that rates could hover around 10% or 15%.
Commerce Secretary Howard Lutnick had previously indicated that smaller countries, particularly in Latin America, the Caribbean and Africa, could face a base tariff of 10%.
From flat tariffs to tiered penalties
Back in April, the Trump administration first floated the idea of a universal 10% tariff on nearly all imports. That idea has now been shelved in favour of a tiered approach. Under the new structure, countries deemed cooperative may receive a lower rate, while those seen as uncooperative face harsher penalties.
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Trump has also abandoned the idea of pursuing detailed, country-by-country
trade agreements
. Instead, he has begun sending out official letters to more than 150 nations, laying out the rates they will face. 'You can't negotiate deals with everyone,' Trump said. 'We need a very, very simple tariff structure.'
According to Trump, these letters count as 'deals', even though most are unilateral notifications with little room for discussion unless the receiving country offers significant concessions.
Deals made with Japan, Philippines and Indonesia
Some countries have already taken steps to avoid the steepest tariffs. Japan secured a reduction from a threatened 25% rate to 15% after agreeing to open its markets to more US goods and back a $550 billion investment fund.
The Philippines reached an agreement where its exports to the US will be subject to a 19% tariff. In return, the Philippines will not impose any duties on American imports.
A similar agreement was announced with Indonesia. As reported by Yahoo Finance's Ben Werschkul, a 19% tariff will apply to Indonesian goods, and a 40% duty will be placed on any 'transhipped' items. A US official added that '99%' of American imports into Indonesia will face no tariff at all.
EU pushing for a 15% rate to avoid higher costs
Talks with the European Union are still underway. The Financial Times reported that Brussels is considering a deal that would fix tariffs on EU goods at 15%, a significant drop from the 30% Trump had earlier threatened.
One EU diplomat told the Financial Times, 'The Japan agreement made clear the terms of the shakedown. Most member states are holding their noses and could take this deal.'
Both sides are looking to exclude certain products from the tariff list, such as aircraft, spirits and medical devices. Bloomberg reported that EU officials are hoping to limit the 15% tariff to key sectors like cars, but also warned that steel and aluminium imports above quota levels could be hit with the full 50% duty.
Even with negotiations ongoing, EU officials are cautious. A final agreement, they say, will still require Trump's direct sign-off, which remains unpredictable.
Larger economies in limbo
While smaller nations may settle for the base 10% rate, the situation remains fluid for major players like India, South Korea and Canada. Trump has floated tariff rates of 25% to 35% for these countries if deals aren't finalised in time.
Treasury Secretary Scott Bessent said on Tuesday that more agreements are likely to be announced in the coming days, but nothing has been confirmed yet.
Trump has made it clear that the aim is to reduce complexity, even if that means fewer exemptions or custom arrangements. His plan favours speed over subtlety.
'We'll have a straight, simple tariff,' Trump repeated on Wednesday, doubling down on the new structure.
While some countries have managed to carve out better terms, the overall direction is now clear. The US is walking away from multi-round negotiations and embracing a model where rates are declared, not debated.
With the 1 August deadline just around the corner, trade partners have little time left to decide whether to agree to US terms or face the new tariffs head-on.
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