President Donald Trump has declared that the U.S. will be independently setting new tariff rates on several trading partners, bypassing the need for individual agreements.
What Happened: Trump announced during a meeting with business executives in the United Arab Emirates that new tariffs would be introduced within the next two to three weeks. Trump stated that Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick will be informing the relevant parties by “sending letters” about the new tariffs and the associated costs for conducting business in the United States, reported the Financial Times.
Trump noted that while there were “150 countries” interested in striking deals, it was not practical to meet with all of them. His administration has already reduced many of the tariffs announced on April 2 to 10% for a 90-day period.
“It’s not possible to meet the number of people that want to see us,” stated Trump.
Why It Matters: This move by the Trump administration comes at a time when the U.S. has been actively engaging in trade negotiations with various countries. On May 11, 2025, markets rallied following the announcement of a tentative U.S.-China trade agreement.
Mohamed El-Erian, Chief Economic Advisor at Allianz, emphasized the significance of these talks, stating that they will reveal insights into China’s tolerance for pain, America’s fear of ’empty shelves,’ and how each country prioritizes longer-term trade policy objectives. He also noted that the longer the U.S. retains prohibitive tariffs on China, the greater the likelihood that other countries will be forced to impose their tariffs on Beijing to protect against dumping.
Notably, Washington is also engaged in negotiations with the EU, Japan, India and several other nations.
While Trump stated that India has offered a ‘no tariff’ proposal, India’s External Affairs Minister S Jaishankar told reporters, “nothing is decided”, while also adding, “..any judgement will be premature.”
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
