Japan, South Korea, Malaysia among 14 nations facing tariffs; what might get pricier for Americans
United States
. The move is a renewed push in his trade strategy to narrow the
US trade deficit
and pressure countries to offer better market access to American products.
At the same time, Trump signed an executive action delaying the implementation of these tariffs except for China until August 1, giving countries a few more weeks to reach new trade deals with the US.
The tariffs were originally paused in April, but are now set to take effect starting August 1 unless new trade deals are reached.
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The first letters were sent to Japan's Prime Minister Shigeru Ishiba and South Korea's President Lee Jae-myung. Both nations now face a 25% tariff starting August 1.
Soon after, Trump announced similar letters were sent to Malaysia, Kazakhstan, South Africa, Myanmar, and Laos, with tariff rates as high as 40%.
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Later in the day, Trump released more letters addressed to leaders of Tunisia, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia, and Thailand.
In his letters, Trump criticized the trade imbalance, arguing that the US buys far more from these countries than it sells to them. He urged the countries to either lower barriers to US exports or move manufacturing to American soil to avoid tariffs.
Trump also warned that tariffs could be raised further if countries retaliate with their own trade restrictions.
What could get more expensive?
If President Trump's new tariffs take effect on August 1, a wide range of everyday and essential goods could become more expensive for American consumers.
Cars and Electronics
Japan and South Korea, which now face 25% tariffs, are key suppliers of cars, auto parts, semiconductors, and electronics.
That means vehicles from brands like Toyota, Honda, Hyundai, and electronic goods such as chips and components for phones, laptops, and appliances could become more expensive.
Pharmaceuticals and Machinery
Both countries also export large volumes of pharmaceutical products and machinery to the US The added tariff burden could raise costs for medical supplies and industrial equipment.
Jewelry and Industrial Metals
South Africa, facing a 30% tariff, is the top foreign supplier of platinum, a metal used in jewelry, electronics, and vehicle catalytic converters. Products containing platinum could also see a price hike.
Computer Chips
Malaysia, which will see a 24% tariff, is the second-largest source of semiconductors to the US These chips are essential in everything from cars to phones, so costs across the tech and auto industries may rise.
Clothing and Accessories
Bangladesh, Indonesia, and Cambodia, which are now facing tariffs as high as 36% are major hubs for apparel and accessories. This could make clothing, footwear, and fashion items more expensive in stores.
In some cases, new rates are higher than what was proposed in April, while in others, like Cambodia, the rates have dropped slightly.
Market Reaction
The U.S. stock market dipped sharply following the announcement. The S&P 500 dropped 0.79 per cent, the Dow Jones fell 422 points (0.94 per cent), and the Nasdaq lost 0.92 per cent, marking the worst day for stocks in about three weeks.
Auto stocks were hit especially hard, with shares of Toyota, Nissan, and Honda falling between 4 per cent and 7 per cent.
Europe Left Out, For Now
Although Trump has often criticized the European Union over trade, EU leaders said they had not received any letters. Irish Foreign Minister Simon Harris said the extension to August 1 could allow time for negotiations toward a "mutually beneficial agreement."
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