It's time to pay up! Trump: Starting tomorrow, letters will be sent to notify countries of tariff rates, three scenario simulations.

The grace period for reciprocal tariffs is down to five days (July 9). Trump announced that this week he will send out tariff notification letters in advance. Companies and investors are facing the dual challenges of rising costs and delayed decision-making, with little time left for negotiation. (Background: U.S. Treasury Secretary Mnuchin: The Federal Reserve will definitely cut interest rates in September! Trump's tariffs have not made inflation worse.) (Additional background: Tariffs to be announced next week! Trump boasts, 'Only a few countries have reached agreements': The U.S. can do whatever it wants.) On the 4th of the month in U.S. time, before the Independence Day fireworks had even bloomed, Washington had already delivered 'explosives' to the door: the tariff bills. With only five days left until the 90-day grace period ends (July 9), the Trump administration has chosen to act early, sending detailed letters daily to countries with which negotiations have not been reached, indicating 'how much tax will be imposed,' aimed at reminding: if you want to stay in the U.S. market, you must pay the price first. Trump stated this morning (4) that the White House will begin sending letters to other countries this week, starting on Friday, around ten countries will receive these letters daily, informing them of the tariff rates they must pay to do business in the U.S. "I prefer to send a letter explaining how much they will pay in tariffs. It’s much simpler that way," he noted. Notably, on April 2 this year, the U.S. announced the reciprocal tariff policy, imposing a 10% Benchmark tax on all imported goods starting April 9, and allowing a 90-day negotiation gap. Who will receive letters and who will breathe a sigh of relief? Currently, the UK, China, and Vietnam have negotiated lower tax rates, which allows for a temporary sigh of relief, but about 170 other countries, including Taiwan, may face rising tariffs, while Japan and Thailand have already begun to calculate their losses. If Thailand’s pet food exports see the tax rate rise from 10% back to 36%, their gross profit will be significantly eroded; Japanese automakers are also concerned that increased tariffs will compress their market share in the U.S. And what about Taiwan? Due to the U.S. Treasury Secretary's claim during an interview with foreign media on the 3rd that about 100 countries globally will pay a 10% reciprocal tariff, the market currently estimates that Taiwan will also be one of them. However, even a 10% tariff could be a huge burden for the semiconductor industry, so caution is warranted. Three Possible Scenarios After July 9 With time running out, the three possible scenarios after July 9 are: 1. Full restoration of the tax rates proposed in April or an increase in tariffs, though the likelihood is low; 2. Gradual tax increases, leaving some negotiation space, which is more likely; 3. Also, it cannot be ruled out that the grace period will be extended again, depending on Trump’s willingness. Currently, companies and investors should begin to prepare in advance: for example, using Hedging to hedge against exchange rates and tax burdens, restructuring supply chains to reduce dependence on a single country, and carefully planning capital expenditures… Overall, July 9 is unlikely to be the end, but rather the beginning of another period of uncertainty, so please be cautious of market fluctuations. Related Reports: China's Bitcoin Mining Giants 'Texas Building Factories' to Counter 30% Tariff Amid U.S. Computing Power Demand. U.S.-China Trade Agreement Completed: Trump: China Will Open Rare Earths, Impose 55% Tariff, Bitcoin Surge and Fall to $108,000. U.S. Court Ruling Invalidates Trump's Tariffs; White House Advisor: Confident in Appeals, Will Confirm Three Trade Agreements. <It's Time to Pay! Trump: Starting Tomorrow, Letters Will Be Sent to Notify Countries of Tariff Rates, Three Scenario Simulations.> This article was first published on BlockTempo, the most influential Blockchain news media.