Adapting his “flood the zone” tactic to foreign trade, US President Donald Trump announced on Wednesday another flurry of take-it-or-leave-it letters imposing tariffs on six smaller economies that have resisted him or are too small to merit individual negotiating attention.
The latest unilateral actions were 20 per cent tariffs on the Philippines, 25 per cent on Moldova and Brunei, and 30 per cent on Iraq, Algeria and Libya, effective August 1. These, the letters added, are separate from any sectoral tariffs that may be imposed later.
The nearly identical letters released on Trump’s social media account said “It is a Great Honor for me to send you this letter” that demonstrates Washington’s willingness to continue trading despite America’s “significant trade deficit with your great Country”.
“Our relationship has been, unfortunately, far from reciprocal,” the letters said. “This deficit is a major threat to our Economy and, indeed, our National Security!”, the president added, signing off “With best wishes”.
The build-up follows this week’s announcement that his original deadline for reaching “90 deals in 90 days” was postponed until August 1 after very few agreements were secured.
The new limit, he quickly added, was “firm, but not 100 per cent firm” if more deals materialised. “I would say final – but if they call with a different offer, and I like it, then we’ll do it”, he added.
