President Donald Trump told reporters Tuesday that he plans to place tariffs of over 10% on smaller countries, including nations in Africa and the Caribbean.
“We’ll probably set one tariff for all of them,” Trump said, adding that it could be “a little over 10% tariff” on goods from at least 100 nations.
Commerce Secretary Howard Lutnick interjected that the nations with goods being taxed at these rates would be in Africa and the Caribbean, places that generally do relatively modest levels of trade with the U.S. and would be relatively insignificant for addressing Trump’s goals of reducing trade imbalances with the rest of the world.
The president had this month been posting letters to roughly two dozen countries and the European Union that simply levied a tariff rate to be charged starting Aug. 1.
Those countries generally faced tax rates on the goods close to the April 2 rates announced by the U.S. president, whose rollout of historically high import taxes for the U.S. caused financial markets to panic and led to Trump setting a 90-day negotiating period that expired July 9.
Trump also said he would “probably” announce tariffs on pharmaceutical drugs at the “end of the month.”
The president said he would start out at a lower tariff rate and give companies a year to build domestic factories before they faced higher import tax rates. Trump said computer chips would face a similar style of tariffs.