US President Donald Trump has unveiled a plan to impose an equal tariff rate on more than 150 countries and regions, according to a media report.
It is a drastic move towards stepping up his administration's trade policy and has already captured international attention.
"It's going to be the same for everybody, for that group," Trump told a meeting in the White House with Bahrain's Crown Prince Salman bin Hamad Al Khalifa on Wednesday.
Trump labeled the targeted countries as those that are "not big" and that "don't do that much business" with America.
The proposal builds on a step taken in April, when the Trump administration imposed a 10% baseline tariff on nations lacking formal bilateral trade pacts. Trump had earlier toyed with raising that baseline to 15% or even 20%, but did not use the occasion of Wednesday's remarks to announce a new rate, according to Politico, reported Xinhua News Agency.
The U.S. already has issued official notices to roughly two dozen trading partners, including the European Union, Japan, and South Korea, outlining the rate of tariffs that will take effect as of August 1. This has sparked a whirlwind of diplomatic activity as countries are demanding either exemptions or more favorable terms.
In spite of the schedule, experts doubt that the new tariff regime will be implemented on time. Economists and political commentators expressed skepticism regarding the potential economic implications, cautioning that it has the potential to disrupt trade flows and trigger volatility in local markets.
India and Switzerland, which accounted for over 3% each of the U.S. 2024 trade deficit but have yet to receive formal notifications, are said to still be negotiating with Washington.
Trump on Wednesday provided conflicting indications on the progress of U.S.-India trade negotiations. "We have another (deal) coming up," he stated at one stage, later explaining, "We're very close to a deal."
On Japan, Trump said talks are under way but seemed uncertain about signing a new deal prior to the new rules' implementation. "I think we'll probably live by the letter with Japan," he said, alluding to the current tariff notice.
While trading partners around the world wait to find out if the administration really will implement the drastic tariff changes or swivel away under intense pressure, many are paying close attention.
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