Latest Letters: Philippines 3 Percentage Point Higher Tariff Rate, Sri Lanka, 14 Percentage Points Lower
As promised, President Donald Trump posted screenshots of more form letters on reciprocal tariff rates for countries' products that will begin Aug. 1. The letters were aimed at small trading partners; the largest, the Philippines, was notified it would see a 20% rate, up from 17% in April.
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Sri Lanka was notified it would see a 30% rate, down from 44% in April. Libya was notified it will see a 30% rate, down from 31% in April. Moldova was notified it would have a 25% rate, down from 31%. Brunei was notified it would face a 25% tariff, up from 24%. Iraq was notified it would face a 30% tariff rate, down from 39%. Algeria will also face a 30% rate, the same rate as announced in April.
Trump was asked by reporters at the White House how he arrived at these numbers. "The formula was a formula based on common sense, based on deficits, based on how we've been treated over the years," he replied. "They're based on very substantial facts and also past history."
Trump said he would be revealing Brazil's rate either later on July 9 or the morning of July 10. Brazil, which buys more goods from the U.S. than it exports to the U.S., was given a 10% rate in April, due to that surplus. In 2025, the U.S. had a $3.2 billion surplus with Brazil, exporting $21.6 billion in goods to Brazil.
"Brazil is an example that's not been good to us, not good at all," Trump said.
Trump said he hasn't had "too many complaints" about the reciprocal tariff rates "because I'm keeping them at a very low number."
He said he can't have the rate be too low, however, because then firms won't be incentivized to open factories in the U.S. to avoid the tariffs. He said it's "stupid" to have no tariffs on products.
"We've taken in hundreds of billions of dollars in tariffs, and we haven't even started yet," he said.
Trump was meeting with the leaders of Liberia, Senegal, Gabon, Mauritania and Guinea-Bissau at the White House at the time he was talking with reporters. One asked if these countries will face tariffs. He said he didn't know, and then joked, "Let's see, I like him, him, him, him, and him. No, I don't think so. Not too much. These are friends of mine now."