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Updated: July 07, 2025 08:05
At precisely 12:00 p.m. Eastern on July 7, former U.S. President Donald Trump launched a broad trade move by sending tariff letters and closing deal offers to 12 nations. The letters, which were labeled as non-negotiable, represent an abrupt shift from customary diplomacy to unilateral action. The action is two days before a July 9 deadline to expire on a 90-day tariff pause declared in April.
Strategic Flashpoints
The letters impose fixed tariff rates, and zero scope for variation, and are included in broader plans for the imposition of a base 10% tariff on most imports
Additional tariffs will be up to 70% on those countries that are not willing to reach an agreement by the deadline expiration.
The UK and Vietnam have already come to terms, side-stepping the harsher terms
India and the European Union are on tenterhooks, with the negotiations appearing deadlocked
New Red Line: BRICS Alignment
Trump warned that whichever country joins the anti-American schemes of the BRICS bloc will face additional tariffs
It comes on the heels of the BRICS summit in Brazil, at which the leaders voiced serious alarm over US tariff threats
Trump's government regards BRICS projects aimed at reducing reliance on the U.S. dollar as a threat to the supremacy of the American economy
100% tariff is proposed for nations actively promoting BRICS currency substitutes or trade realignment
Trade Deal Tracker
The UK retained the 10% base tariff with sectoral exceptions
Vietnam secured a reduced 20% tariff, from 46%, in exchange for greater access to the U.S. market
China and America have suspended tariffs on each other's goods on a temporary basis pending further negotiations
India and the EU are faced with a daunting choice: accept America's conditions or risk heavy duties from August 1
Global Reactions BRICS leaders condemned the tariffs as unfair and disastrous to global trade
Japan and France expressed hesitation, with Japan's PM stating he will not easily compromise
Analysts predict retaliatory measures and the likelihood of further trade tensions escalation
Trump defended the move as a rebalancing of decades of what he called unfair trade
What's Next
Nations have until July 9 to close deals or risk the new tariffs from Aug 1
The letters are designed to trigger a burst of last-minute negotiations—or a wave of tit-for-tat tariffs
With maximum pressure now Trump's approach, the international trade world is preparing for turbulence
Sources: The Economic Times, The Hindu, Indian Express, Reuters, Deccan Chronicle, National Herald India, Global Affairs Russia, MSN News_literals, Livemint
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