US President Donald Trump has indicated that the United States may soon impose a global baseline tariff between 15% and 20% for countries that do not have trade agreements with Washington. The announcement came during a joint appearance with British Prime Minister Keir Starmer during an ongoing trip to Scotland — mere hours after the POTUS announced the US-European Union trade deal. The numbers suggested on Monday are also well above the broad 10% tariff he had imposed in April and subsequently suspended.

‘Setting a global tariff’

“We’re going to be setting a tariff for essentially, the rest of the world. And that’s what they’re going to pay if they want to do business in the United States. Because you can’t sit down and make 200 deals…For the world, I would say it’ll be somewhere in the 15% to 20% range…I just want to be nice. Probably one of those two numbers,” he said on Monday.

The US President had imposed sweeping reciprocal tariffs against nearly all imports from more than 180 countries earlier this year, with a baseline 10% levy. The tariffs have been suspended repeatedly since the announcement was made on April 2 and are now scheduled to take effect on August 1. Trump has already announced higher rates of up to 50% for some countries, while others have struck trade deals in the eleventh hour.

Major deals struck recently

The tariff letters sent out earlier this month have spurred feverish negotiations with a host of countries — including India, Pakistan, Canada, and Thailand. Trump clinched a major victory on Sunday with the European Union agreeing to a deal that includes a 15% tariff on most goods, $600 billion of US investments by European firms, and $750 billion in energy purchases over the next three years. The announcement came days after the US struck a $550-billion deal with Japan as well as smaller agreements with Britain, Indonesia, and Vietnam.

Talks remain underway with other countries (including India) but prospects have dimmed for many more agreements before Friday. Meanwhile Canadian Prime Minister Mark Carney said on Monday that trade talks with the US were at an intense phase. He conceded that his country was still hoping to walk away with a tariff rate below the 35% announced by Trump on some Canadian imports.


(With inputs from agencies)