Trump says US will impose tariff rate of 15 to 20% on 'rest of the world'

United States President Donald Trump said his administration will be setting a tariff rate “essentially for the rest of the world”, which he expects to range between 15 to 20 per cent.

Trump was speaking on Jul. 28 in a press conference with United Kingdom Prime Minister Keir Starmer, hours after the U.S. agreed on a new trade deal with the European Union.

World tariff rate

Reuters reported that Trump told reporters that about 200 countries would be notified of their new “world tariff rate” soon.

He suggested that the rate would range between 15 and 20 per cent, or more precisely, the rate would be either 15 or 20 per cent; Trump suggested both possibilities.

Trump has made deals with many of the U.S.’s main trading partners, including Japan, with a 15 per cent tariff rate, and the European Union, also with a 15 per cent tariff rate.

It has also recently announced trade deals with Asean countries, the Philippines and Indonesia, both at 19 per cent.

The UK appears to have the lowest tariff rate so far with a deal made at 10 per cent, although with higher tariffs on British steel.

Trump has also issued letters to several Asean countries informing them of new tariff rates, different from the Apr. 2 “Liberation Day” rates they were issued.

Trump, who prides himself on being a dealmaker, said that the U.S. would set a rate for “essentially, the rest of the world”, because “you can’t sit down and make 200 deals”.

That, he said, would be what “they’re going to pay if they want to do business in the United States”.

Pharmaceutical cudgel

Trump said that beyond just the tariff rate that had been agreed with countries, there were individual agreements with countries, such as Japan, on rice, that would allow U.S. market access where before the market had been closed.

Trump said his administration would make an announcement on pharmaceutical goods “soon”, although he did not clarify the nature of the announcement.

However, he said that his administration had a “very big plan” on pharmaceuticals, and that he intended to bring “a lot of the pharmaceuticals back to America, where they should be”.

But he also praised the UK's pharmaceutical industry, noting that the U.S. preferred the UK to other countries, saying that "we certainly feel a lot better with your country working on pharmaceuticals" than "other countries" due to the U.S.-UK relationship.

The UK, Trump said, would not use "that as a cudgel".

Trade deal

Singapore’s Deputy Prime Minister and Trade and Industry Minister Gan Kim Yong was in the U.S. last week to speak to U.S. trade officials about a trade deal with Singapore.

Singapore has a Free Trade Agreement with the U.S. as well as a trade deficit with the U.S., which is rare among the U.S.’s trade partners.

In addition to the tariff rate for Singapore, a potential separate pharmaceutical is of high concern, and the topic was cited as a high concern for Gan’s team during trade talks.

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Top image via White House/Facebook