Trade War Escalates: Trump Warns of More Tariff Letters

Last Updated Jul - 09 - 2025, 03:20 PM | Source : Fela News

Tensions rise as President Trump threatens more tariff letters to trading partners, escalating a trade war strategy that’s already seen 14 nations notified befo

President Donald Trump is ramping up the trade pressure, warning that more tariff letters are on the way to additional nations. On Monday, he revealed plans to “release a minimum of seven countries” on Wednesday morning and more by afternoon adding to a list that now totals 14 notified nations ahead of the looming August 1 deadline for reciprocal tariffs.

The existing letters have already reached countries such as Japan, South Korea, Myanmar, Laos, South Africa, Kazakhstan, and Malaysia. Tariff rates range from 25% to 40%, with some targeted increases for items like pharmaceuticals. Trump's administration emphasizes that these letters serve as both warnings and invitations: nations can negotiate new trade deals or face steeper levies, potentially up to 70% or even 200%, depending on the commodity.

This strategy demonstrates a sharper, more public shift from traditional behind-the-scenes diplomacy. Trump insists this is a deliberate escalation to correct trade imbalances and boost U.S. manufacturing, even as some officials suggest he might adjust rates based on ongoing negotiations. On the other hand, markets have shown resilience, and some investors believe this could be a bluff, referencing the “Trump always chickens out” or “TACO” pattern.

As the August 1 deadline nears, only limited agreements have been reached with the UK, Vietnam, and China tentatively on board. Still, the administration is signalling zero tolerance for delay. Trump has declared no extensions will be granted and is pushing for swift resolution even threatening higher tariffs if countries rally together or retaliate.

In the coming days, the world will watch closely. Will more letters be sent? Will any of the 14 notified nations manage to negotiate softer terms or will the trade war spiral further? For now, global commerce remains on edge as Washington intensifies its strategic brinkmanship.