The administration of President Trump says that he will send a letter on Monday to the Tariff countries, which will apply to its exports starting from August 1.

“We are going to make a combination of letters, and some deals have been done,” Trump told reporters on Sunday evening.

Trump has launched a wide range of tariff rates, making the possibility of making sufficient jump in tariff American trade and consumers will pay for goods from abroad. Trump regularly stated that these rates were in the form of vengeance against conservationist measures of other countries.

While Trump often frames tariffs as paid by other countries, this is not the case. Tariffs are taxed by companies in the US for imported goods or components to the US government. As a result, the cost of tariffs is often passed to consumers in the form of high prices.

The new tariff letter is the result of the months of uncertainty, stems from an executive order of April 2 in which Trump imposed tariffs on almost every country worldwide. Trump announces those tariffs Rose Garden Event, 2 April is called “Liberation Day”. New taxes included high rates on goods from some of America’s largest trading partners Vietnam and Japan,

A week later, after the stock markets fell and economists warned of serious consequences, Trump announced that he was Lowering tariffs by 10% for 90 daysAfter that “break”, as they called it, set a tariff to jump back to those “liberation day” levels on Wednesday, 9 July.

In interim, the President repeatedly said that he Tariff deals with individual countries before 9 July, at one point “90 deals in 90 days“However, only two deals have been announced, however, with Britain in early June With Vietnam on 2 July,

Since then, Trump and his team were not clear how much firm the time limit of July 9 was. Treasury Secretary Scott Besent suggested at one point that tariff deals with individual countries could be actually higher till labor day.

It represents a highly unconventional and potentially risky approach to business. Trump prefers bilateral trade deals on multilateral deals, pursuing previous administration, such as Trans Pacific Partnership, a trade agreement, consisting of 12 Asia-Pacific countries. The deal was complicated, the result of a decade of a decade – negotiations began in 2008, in George W Bush Administration, and Barack Obama’s two conditions continued when Trump took over in 2017, when he took America out of TPP talks.

This means that Trump’s tariff deals also have much faster than many previous American trade deals, the President pressure using the size of the US economy to pressurize other countries to come into agreements. He also focuses on bilateral trade deficit how positive a trade relationship is, although mainstream economists believe it is a poor measure.

The potential benefits of these tariff deals include reducing trade obstacles of other countries, tariffs and other rules, giving us more consumers to sell exporters.

But the costs are real, and upfronts will be paid by American companies, which will probably pass some of those costs to consumers.

For example, Trump hit with Vietnam, for example, set tariff rates at 20% for Vietnamese accessories. It is less than 46% Trump imposed on April 2, but also more than where tariffs were before Trump. Subsequently, the average American tariffs on Vietnamese goods were around 3%.

This means the cost for consumers of goods from Vietnam – including machinery, equipment, clothes and shoes – may soon be clearly more expensive as they are.

In addition, bilateral deals may not be the most efficient way to achieve the goals of Trump.

“US-Vietnam trade restriction will be very low today if the US-Vietnam trade restriction at the Libeterian think tank Kato Institute said,” If Trump did not go away from TPP in 2017, “Scott Linnasicom said, said, a specialist in business at Libeterian Think Tank Catato Institute.