Trade War flares up again: Trump sends letters to countries on import duties

In recent months it has been relatively quiet around the trade war of Donald Trump. But the break that was inserted for the EU, among other things, ends on July 9. And the situation now trumps Trump again on the fire. In a number of letters, the rates appear to be gigantically again.

Trump enters the pressure

The US president has announced that his government today sends 10 to 12 official letters to countries worldwide on new import duties. This includes rates that rise to no less than 70 percent. In addition, these taxes would soon come into effect, namely on 1 August. And that is just the beginning. According to Trump, even more letters will be sent to countries in the coming days.

Only a handful of countries, such as the United Kingdom and Vietnam, managed to close a deal so far. With China there is a provisional agreement on the table that awaits approval. Many other economic heavyweights, including the European Union, Japan and South Korea, are still empty-handed. Chairman of the European Commission Ursula von der Leyen has announced that they are open to an agreement.

With five days to go, this is the time for the EU to reach an agreement. There will probably be a few more deals. Bessent, the American Minister of Finance, indicated that he expected a wave of trading deals before July 9, Walter Bloomberg reported on X. Whether the EU falls under it, is uncertain and remains speculation.

Impact on the financial markets

However, in the coming days will be crucial. If the substantial rates that Trump is talking about is actually imposed on, it can again cause panic on both the cryptomarkt and the traditional financial markets.

At the beginning of April, Trump still announced import duties of 10 to a maximum of 50 percent. At China it was completely hit with rates up to 145 percent. This led to enormous shock reactions in the financial markets. Bitcoin (BTC), for example, dived down below $ 75,000.

In the end, Trump decided to insert a 90 -day trading break and the peace came back. During this period, a temporary and relatively mild basic rate of 10 percent applied, so that countries were given extra time to negotiate new trading deals.