Trump announces new tariffs of up to 40% on a growing number of countries

President Donald Trump cranked up the pressure Monday on America’s trading partners, firing off letters to heads of several countries, informing them of their new tariff rate. But at the same time, Trump took some of the edge off by signing an executive action Monday to extend the date for all “reciprocal” tariffs, with the exception of China, to August 1.
Those “reciprocal” tariffs were expected to go into effect Wednesday. In some cases, the letters Trump sent specify new “reciprocal” tariff rates that are higher or lower compared to April levels.

Trump was not definitive when asked if the new August 1 deadline was “firm” ahead of a dinner at the White House on Monday night. “I would say firm, but not 100% firm. If they call up and they say would like to do something a different way, we’re going to be open to that.”

Japan’s Prime Minister Shigeru Ishiba and South Korea’s President Lee Jae-myung were the first recipients of Trump’s letters.

Both countries will face a 25% tariff come August 1, according to the letters, but both nations said on Tuesday they plan to engage in further talks with the US, with Japan saying it was working towards a trade deal.

Trump announced similar letters were sent to Malaysia, Kazakhstan, South Africa, Myanmar and Laos, informing their leaders of new tariff rates as high as 40%.

Nations respond

Many of the nations that have received the letters have welcomed the extension of the deadline, and appear eager to continue discussions with the US to strike better deals.

Japan’s Ishiba convened a cabinet task force on Tuesday morning and voiced Tokyo’s deep “regret that the U.S. government has imposed additional tariffs and announced plans to raise tariff rates.” He said the country would continue negotiations with the United States to seek a bilateral trade deal that benefits both countries.

South Korea’s finance ministry said in a statement that it would monitor developments closely, but warned that if market fluctuations become “excessive” the government would “take immediate and bold action in accordance with its contingency plans,” though it did not immediately detail what that action may entail.

Thailand is still facing tariffs at the higher end, at 36%, but its finance minister Pichai Chunhavajira told reporters on Tuesday that he’s confident Bangkok will be able to negotiate a more competitive levy, saying it has submitted a proposal to the US in “good faith.”

Malaysia, facing a 25% tariff rate, also plans to “continue discussions” with the US to reach a “balanced and mutually beneficial trade agreement,” its trade ministry said on Tuesday, Reuters reported.

South Africa’s president Cyril Ramaphosa said diplomatic efforts would continue, but urged local businesses to accelerate their diversification efforts, in a post on X. Ramaphosa also said that the US had based the 30% tariff rate for South Africa on an “inaccurate representation” of trade data.