The Blubber

Donald Trump has said the U.S. will begin sending formal letters to some of its trading partners to unilaterally impose new tariff rates, a move that underscores Washington’s limited capacity to negotiate individual trade agreements on a large scale.

Speaking to business leaders in the United Arab Emirates during his Gulf tour, Trump noted the sheer volume of interest in making deals with the U.S. “We have, at the same time, 150 countries that want to make a deal, but you’re not able to see that many countries,” he said, suggesting that it’s simply not feasible to meet with everyone.

Because of this, Trump said Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick would begin sending out notices outlining the tariff rates that would apply to various countries’ exports to the U.S. “At a certain point over the next two or three weeks, I think Scott and Howard will be sending letters out essentially telling people—it will be very fair—but we’ll be telling people what they’ll be paying to do business in the United States,” Trump said.

It remains unclear whether the tariffs being imposed will be in addition to those already in place, or whether the rates will be increased or reduced.

The move reflects the complexity of the undertaking Trump’s administration faces following the imposition of sweeping import taxes on April 2, dubbed “liberation day.” In response to market backlash—especially in the bond markets—Washington has already walked back some of its tougher trade actions. That includes suspending “reciprocal” tariffs on some partners like the EU, reaching a trade agreement with the UK to reduce tariffs, and agreeing to a 90-day tariff pause with China.

As part of that China deal, duties on American goods entering China were lowered to 10%, while the U.S. agreed to bring its tariff rate on Chinese imports down to 30%.

Despite these adjustments, a 10% universal tariff on all foreign imports to the U.S. remains in place.

The White House has said it is focusing its efforts on reaching agreements with the largest U.S. trading partners—such as India, South Korea, and Japan—while talks with the EU are still underway.

Trump’s remarks suggest that rather than pursuing dozens or even hundreds of separate trade deals, the administration is opting to dictate terms directly, citing the logistical impossibility of negotiating with every country simultaneously.