US President Donald Trump has reignited global trade tensions by renewing threats of reciprocal tariffs on major trading partners. While giving countries until August 1 to strike new trade deals, Trump warned that nations failing to align with US interests will face steep duties—up to 30 percent in some cases.
Tariffs Set to Hit Multiple Countries
On Monday, Trump issued letters to Japan, South Korea, and South Africa announcing fresh tariffs: 25% on Japan and South Korea, and 30% on South Africa. Additional levies were also declared on Malaysia, Kazakhstan, Laos, and Myanmar. These match or slightly adjust the rates proposed during Trump’s “Liberation Day” speech in April.
While the original July 9 deadline has been extended, the markets reacted negatively. The S&P 500 fell 1.2%, and currencies in the targeted countries lost about 1% against the US dollar.
Read: Trump Targets BRICS: 10% Tariff Threat for Nations Opposing US Policies
Tariffs May Be Negotiable
In his letters, Trump labeled the US trade deficits with Japan and South Korea as threats to national security. However, he left room for negotiation. If these countries open their markets to more US goods, tariff adjustments—either upward or downward—remain possible.
Trump warned that any retaliatory tariffs would result in equal or greater US penalties. Still, his message suggested flexibility if trading partners show willingness to compromise.
Auto, Steel Tariffs Remain Unchanged
The newly announced tariffs won’t apply to sectors already under existing duties, such as autos (25%) and steel/aluminum (50%). Nonetheless, broader national security probes could soon lead to new tariffs on sectors like aerospace, pharmaceuticals, and electronics.
Political Turmoil Slows Talks
Trade talks with South Korea have stalled due to internal political upheaval. Japan, meanwhile, has proposed buying more US energy and agriculture products but continues to seek exemptions from auto tariffs.
In a related development, the EU may sign a temporary trade deal with the US this week. Talks aim to reduce auto tariffs but leave steel duties at 50%.
The coming weeks will test whether diplomacy or escalation will define Trump’s tariff strategy.
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