US President Donald Trump announced a new round of tariffs, releasing a list of countries that may face higher tariffs on their exports to the US. On Monday, Trump confirmed that letters had been sent to several countries, warning that if new trade agreements are not reached by August 1, increased import duties would be imposed.
The initial letters were addressed to Japan and South Korea. Following that, similar notices were sent to 12 other countries, including South Africa, Indonesia, Thailand, Cambodia, Malaysia, Bangladesh, Laos, Myanmar, Bosnia, Serbia, Kazakhstan, and Tunisia.
Key Highlights
- Trump issued letters imposing 25–40% reciprocal tariffs on 14 countries starting August 1, awaiting trade deals.
- Countries like Japan and South Korea face 25% tariffs, while Laos and Myanmar risk 40% duties.
Later at the White House, Trump stated that he was "for the most part" content to impose the duties, but that negotiations with some countries were still ongoing.
He mentioned that agreements had already been reached with the United Kingdom, China, and Vietnam, and that negotiations with India were going well. He explained that because some other countries were unwilling to negotiate, the letters were sent without further discussion.
Trump also stated that the August 1 deadline was not completely set and could be adjusted depending on how the negotiations progressed. On Monday, he issued an executive order delaying the implementation of the new tariff rates until that date, effectively giving the targeted countries a few extra weeks to reach agreements with Washington.
NEW TARIFF RATES PER COUNTRY
Goods from Malaysia, Kazakhstan, and Tunisia are likely to face a 25% tariff. South Africa will face a 30% duty. Laos and Myanmar have been assigned a 40% tariff.
Indonesian goods may face a 32% duty, while Bangladesh will face a 35% rate. Thailand and Cambodia are set at 36%. Bosnia and Herzegovina will pay 30%, and Serbia 35%. The rates in Japan and South Korea are 25%.
Trump warned these countries not to respond with retaliatory tariffs. He stated in the letters that if a country raises its own tariffs in response, the United States will match that increase by raising its own duties by the same amount.
Karoline Leavitt, the White House press secretary, stated that additional letters will be sent to other countries in the coming days.
The move increases uncertainty for markets, businesses, and policymakers around the world, particularly as many are already dealing with the effects of high inflation, supply chain challenges, and a slowing global economy.
This development follows Trump's previous announcement at a Rose Garden event, in which he unveiled a tariff plan and gave countries 90 days to negotiate before raising the 10% base tariff. That deadline was initially pushed to July 9, and is now effectively August 1.
Also Read: Trump Claims US Nearing Trade Deal with India Amid Tariffs on 14 Other Nations
Most countries have struggled to reach agreements in the limited timeframes. The United Kingdom was able to negotiate the retention of the base tariff rate, as well as exemptions for specific sectors.
Vietnam agreed to face a lower 20% tariff, down from the previously proposed 46%, in exchange for allowing more US goods into its market. India and the EU are still in negotiations.
WHAT DO THESE COUNTRIES EXPORT TO AMERICA?
Japan is well-known for exporting electronics, medical equipment, and cars. For US consumers, higher tariffs may result in higher prices for televisions, cars, and diagnostic equipment.
South Korea exports ships, automobile parts, and semiconductors. The manufacturing and technology industries may be impacted by tariffs.
Malaysia's main exports are plastics, rubber, and semiconductors, which are used in goods like computers and medical equipment.
Bangladesh and Cambodia are important manufacturers of inexpensive apparel, leather goods, and furniture, while Thailand exports electronics, seafood, and machinery.
South Africa provides metals, fruits, and automobiles, while Indonesia exports electronics, footwear, and palm oil. Serbia exports furniture and agricultural equipment.
Laos and Myanmar are known for their low-cost footwear and wood products. Bosnia and Herzegovina exports metals, wood, and shoes. Kazakhstan exports oil, metals, and chemicals, while Tunisia produces olive oil, textiles, and machinery.
