Trump’s Tangled Tariff Ticket: Quick & Quirky
What’s happening? On Friday, July 4, President Donald Trump said the U.S. will shoot formal letters to 170+ foreign governments. The letters spell out the exact tariff rates their imports will hit in the U.S. Think of it as the government’s new “tariff telegram” service.
From Deal‑Hunting to One‑Size‑Fits‑All
Earlier the administration tried to juggle dozens of individual trade deals. Now the plan is simple, symmetric, and a bit…so‑call‑ish. Instead of negotiating separately with each country, the U.S. will impose a single, reciprocal tariff structure.
- Letters will be sent out in groups of 10 countries at a time.
- Most recipients will see tariffs of 20‑30%.
- Winners? Britain managed to keep its rate at 10% and snag special perks for cars and aircraft engines.
From Wild Tariffs to a “Temporary” Cap
Remember April 2) when Trump launched a massive tariff wave—10% to 50%—and then hit the pause button, capping most rates at 10% until July 9? That pause has let some countries with 10% rates start talking, but many have yet to engage. The reason? Trade talks take time, and people just want to keep the numbers simple.
Corporate Fallout and IT Chill
Mark McCarthy, Chief Revenue Officer at Basware, warned that trading wars create market uncertainty and delay IT spend. Companies are now prioritising low‑risk, high‑return fixes—like Accounts Payable automation—to keep supplier nights calm. An interesting fact: 90% of businesses pay suppliers late, but automation can trim processing from 10 days to under four.
Money Laundering on the Menu
Compliance guru Michael Joseph from Napier AI added a darker twist: Fluctuating tariffs can open doors for money laundering. He explained that trade diversion—choosing a 10% route over a 145% one—can create opportunities for invoice manipulation, false origin documents, and shady third‑country routing. These tactics are classic trade‑based money laundering, harder to spot during volatile periods.
Vietnam’s New Lease on Life
On a bright note, Trump concluded a deal with Vietnam—trimming U.S. tariffs on Vietnamese goods from 46% to 20% and granting a wide range of American exports duty‑free.
Bottom Line
Trump’s tariff strategy is a blend of sassy simplicity and strategic retaliation. While the U.S. sends letters that feel more like a “tariff telegram,” the world watches, watching out for double‑crossing traders and the ripple effects on global supply chains.
