Trump delays tariff hikes to August, targets new countries

Arabian Business

5 days ago

United States President Donald Trump has postponed the implementation of steep tariff increases on imports from key trade partners, extending the deadline to 1 August while escalating his demands for concessions from 14 countries.
The latest announcement, made Monday, marks a significant expansion of Trump's protectionist trade agenda, which he says aims to correct 'unbalanced' trade relationships and boost US manufacturing. The measures threaten tariffs ranging from 25 per cent to 40 per cent on goods from countries including Japan, South Korea, Malaysia, South Africa, Indonesia and Tunisia.
The affected nations were notified via near-identical letters sent by Trump to their heads of state. Each letter, posted to Truth Social, warned that unless the countries eased trade barriers and opened their markets further to US goods, they would face significantly higher import duties starting next month.
'These tariffs may be modified, upward or downward, depending on our relationship with your country,' Trump wrote, while warning that retaliatory taxes would trigger even steeper US penalties.
Regional pressure
In the Middle East and North Africa, Tunisia and South Africa are among those facing new tariffs. Tunisia is targeted with a 25 per cent duty, while South Africa faces 30 per cent. Both countries have growing trade links with the US and are also recent additions or partners to the BRICS bloc — a grouping Trump has increasingly criticised in recent weeks.
The move is part of what Trump has described as a broader campaign for 'reciprocal trade' and fairer market access for American companies. 'We're going to protect our workers and industries,' Trump said, speaking to reporters in New Jersey on Monday. 'We're done being the piggy bank.'
The new tariff rates are as follows:
Laos, Myanmar: 40 per cent
Thailand, Cambodia: 36 per cent
Serbia, Bangladesh: 35 per cent
Indonesia: 32 per cent
South Africa, Bosnia and Herzegovina: 30 per cent
Japan, South Korea, Malaysia, Tunisia, Kazakhstan: 25 per cent
These duties are set to replace a blanket 10 per cent tariff currently in place on imports from the affected countries.
Japan's Prime Minister Shigeru Ishiba called the US decision 'deeply regrettable,' adding that Tokyo would continue to negotiate 'toward a mutually beneficial resolution.' South Korea's Ministry of Trade, Industry and Energy said it would intensify talks with Washington ahead of the new deadline.
Malaysia's Ministry of Investment, Trade and Industry issued a similar statement, pledging to work toward a 'balanced, mutually beneficial, and comprehensive' deal.
White House Press Secretary Karoline Leavitt said more letters were likely in the coming days and described the administration as 'close' to striking additional deals.
So far, only three countries — the UK, Vietnam and China — have reached preliminary agreements to avoid the new tariffs. US Treasury Secretary Scott Bessent said on Monday that several other countries had submitted new proposals and that a 'busy few days' of talks were expected.
In April, Trump had first announced a wave of reciprocal tariffs under what he termed 'Liberation Day' policy measures. While some of the most punitive duties were suspended under a 90-day grace period set to expire this week, Monday's executive order extends that pause — but also resets the threat.
A clause in the letters makes clear that tariffs could be withdrawn altogether for countries that commit to localising manufacturing in the United States.
Negotiations are now set to intensify over the next three weeks. Trade officials in Tokyo, Seoul, Kuala Lumpur and other capitals are seeking to soften the impact or avoid the tariffs entirely, with car exports, agricultural goods, and digital trade cited as key areas of contention.
Trump has separately threatened an additional 10 per cent tariff on nations that align closely with the BRICS group — a veiled shot at countries moving closer to China, Russia and emerging economies in the Global South.