Trump's Tariff Bombshell: Who's Hit, What's At Stake And How Nations Are Reacting

India.com

a day ago

Washington: U.S. President Donald Trump announced on July 7 a firm deadline. August 1 marks the end of the tariff pause he first introduced in April. Fourteen nations received letters warning of new American import taxes if they fail to strike deals by then.
White House officials confirmed to Al-Jazeera that tariffs announced on April 2 were suspended on April 9 for 90 days. They now resume August 1 under an executive order signed by Trump.
The countries facing these renewed duties include Japan and South Korea at 25 percent each, South Africa at 30 percent, Laos and Myanmar at 40 percent and others with rates ranging from 25 percent to 40 percent. Some rates, according to Reuters, like those for Kazakhstan and Bangladesh are lower than what was originally planned, while Malaysia and Japan saw slight increases.
Trump posted the full letters on Truth Social. He raised concerns about trade imbalances and offered exemptions for companies that shift production to the United States. He warned that any retaliatory tariffs by those nations could trigger even steeper U.S. rates. He also emphasised flexibility, promising to adjust rates 'upward or downward' depending on each country's relationship with America.
The United States also issued a separate warning to BRICS nations, threatening an additional 10 percent tariff on countries aligning with anti‑American positions during the group's summit in Brazil.
Some partners have reacted. Japan's Trade Minister said Tokyo will negotiate, especially on automobiles, but will protect its agricultural interests, according to Reuters.
South Korea, as reported by apnews.com, announced steps to address the trade shortfall with America. South Africa expressed strong objections, calling the 30 percent tariff unjustified and promising to pursue more diplomatic resolutions.
Markets responded with mixed signals on Monday. U.S. equities dipped slightly – Dow down nearly 1 percent, S&P 500 off by 0.8 percent and Nasdaq down 0.9 percent. Asian markets remained relatively stable.
The Indian rupee strengthened slightly after India was excluded from the tariff list, while other Asian currencies held steady, Reuters reported.
Two interim trade deals have already materialised. In May, a U.S.-U.K. agreement fixed a 10 percent tariff on initial U.K. vehicle exports, rising later to 25 percent. Then in early July, the United States reached terms with Vietnam, setting a minimum 20 percent U.S. tariff and a 40 percent charge on rerouted goods, Al-Jazeera reported.
The looming deadline carries high stakes. Trump called it 'firm' but allowed for negotiation if leaders reach out with new proposals, according to Politico.
Experts warn the strategy reflects his aggressive blend of negotiation through pressure and brinkmanship. Some commentators refer to this approach as the 'TACO' trade – Trump Always Chickens Out – highlighting his pattern of issuing threats and then delaying.
Key dates to watch: July 9 was the original deadline, now superseded. July 14 ends the EU's suspension of retaliatory tariffs. August 1 is the new trigger date for U.S. measures.
Negotiators in Washington suggest possible deals with India and the European Union could still emerge before that. But partners remain cautious. Stock markets jitter at any sign of prolonged trade tension.