New tariffs range up to 40% as Trump posts letters to foreign leaders
President Donald Trump announced Monday that steep tariffs will be imposed on imports from 14 countries beginning Aug. 1, following his decision to delay the original Wednesday deadline by signing an executive order.
Trump revealed the tariff rates through form letters posted on Truth Social, addressed to leaders of Japan, South Korea, Malaysia, Kazakhstan, South Africa, Laos, Myanmar, Tunisia, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia, and Thailand.
The new rates vary significantly by country. A report from CNBC noted that Japan and South Korea will face 25% tariffs on their goods, while Myanmar and Laos will be hit with the highest rates at 40%. Cambodia and Thailand are set for 36%, Serbia and Bangladesh at 35%, Indonesia at 32%, and South Africa and Bosnia and Herzegovina at 30%. Kazakhstan, Malaysia, and Tunisia will also face 25% tariffs.
Warning issued against retaliatory tariffs
“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge,” Trump wrote in letters to Japanese prime minister Shigeru Ishiba and South Korean president Lee Jae Myung.
The letters warn countries against retaliating with their own tariffs and suggest the rates could be adjusted “depending on our relationship with your Country.” Trump added that the US would “perhaps” consider modifications if countries eliminate their trade barriers.
White House press secretary Karoline Leavitt said additional letters would be sent in coming days, describing the approach as “tailor-made trade plans for each and every country on this planet.”
The announcement follows Trump’s April 2 “Liberation Day” tariffs, which were paused at 10% for 90 days to allow for negotiations. The administration had promised “90 deals in 90 days” but has produced only broad frameworks with the United Kingdom and Vietnam, plus a preliminary agreement with China.
Financial markets reacted negatively to the announcement. The Dow Jones Industrial Average fell 422.17 points, while the S&P 500 dropped 0.79% and the Nasdaq fell 0.92%.
The Associated Press reported that South Korea’s Trade Ministry announced it would accelerate negotiations with the US to reach a mutually beneficial deal before the tariffs take effect. The office of South African president Cyril Ramaphosa said the tariff rates mischaracterized the trade relationship but pledged continued diplomatic efforts.
The tariffs face legal challenges, with Trump’s emergency powers authority under appeal after a federal court ruled in May that he exceeded his authority. The administration is appealing that decision while the tariffs remain in effect during the review process.
