Trump Hits Libya With 30% Tariff, Urges Country To Bring More Manufacturing To The US

President Donald Trump announced a 30% tariff rate on Libya on Wednesday in a letter published on Truth Social, but hinted that there was a way out. 

“As you are aware, there will be no Tariff if Libya, or companies within your Country, decide to build or manufacture products within the United States, and, in fact, we will do everything possible to get approvals quickly, professional and routintel,” he wrote in the tariff letter to Libya.

He clarified that the 30% tariff on Libya would be in addition to the sectoral tariffs that are already in place. 

He added that goods transshipped to evade a higher tariff would be subject to that higher tariff. Trump also warned that if Libya responded with reciprocal tariffs, then equivalent tariffs would be added to the levies the U.S. has imposed on Iraq.

“Please understand that the 30% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your country,” the President said in his Truth Social post.

Equity markets remained in the green after the announcement. The SPDR S&P 500 ETF (SPY), which tracks the broader S&P 500 index, was up 0.26%, while the SPDR Dow Jones Industrial Average ETF (DIA) was 0.15% higher. Invesco QQQ Trust Series 1 (QQQ), which tracks the tech-heavy Nasdaq-100, gained 30% in morning trade.

However, retail sentiment on Stocktwits around SPY dipped to ‘neutral’ from ‘bullish’ a day ago.

Trump warned on Wednesday that he would be issuing letters to at least seven countries today. In addition to Libya, the President has issued tariff letters to Iraq, the Philippines, Moldova, Algeria, Brunei, and Sri Lanka. 

The announcement comes after Trump has already announced tariffs on South Korea, Japan, and 12 other countries. In a post on Truth Social, he reiterated that there would be no change or extensions to the raft of duties he announced on those nations. 

According to U.S. Commerce Secretary Howard Lutnick, there are another 15 to 20 new tariff letters due in the coming days. He also said that the copper tariffs announced by Trump are likely to be put into place by the end of July, maybe August 1.

During a cabinet meeting on Tuesday, the President also said that the U.S. would be implementing 50% tariffs on copper as well as trade levies on the semiconductor and pharmaceutical sectors.

According to Trade Secretary Scott Bessent, the U.S. has already collected $100 billion in tariffs so far this year and expects that figure to reach $300 billion by year-end.

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Read also: Trump Slaps 30% Tariff On Iraq, Says It’s ‘Less Than What Is Needed’