US President Donald Trump has sent tariff letters to 14 nations, including Japan, South Korea, and Malaysia, with tariffs ranging from 25% to 40%, effective August 1. The letters, shared on Trump’s Truth Social platform, outline the new tariff plans and warn that countries failing to reach trade deals with the US before the deadline will face sharply higher tariffs.
Countries Affected by Tariffs
– *Japan and South Korea*: 25% tariff on goods imported from these countries, with both nations expressing willingness to negotiate and soften the impact of the tariffs.
– *Laos and Myanmar*: 40% tariff, the highest among the 14 nations.
– *Thailand and Cambodia*: 36% tariff.
– *Bangladesh and Serbia*: 35% tariff.
– *Indonesia*: 32% tariff.
– *Bosnia and Herzegovina*: 30% tariff.
– *South Africa*: 30% tariff, with President Cyril Ramaphosa pushing back against the tariffs, saying they are based on an inaccurate understanding of trade ties.
– *Malaysia*: 25% tariff.
– *Kazakhstan*: 25% tariff.
– *Tunisia*: 25% tariff.
Reactions from Affected Countries
– Japan and South Korea have expressed willingness to negotiate with the US to soften the impact of the tariffs.
– South Africa’s President Cyril Ramaphosa said the tariffs are based on an inaccurate understanding of trade ties and urged South African companies to engage with the US on trade issues.
– Southeast Asian nations are pushing for more talks with the US to avoid the tariffs.
Implications of the Tariffs
– The tariffs are part of Trump’s broader trade policy aimed at protecting American companies and jobs.
– Economists believe the tariffs will make things more expensive for American buyers and reduce trade.
– The US stock market reacted negatively to the news, with the Dow closing nearly 1% lower.
Ongoing Trade Negotiations
– India-US trade deal:
A “mini trade deal” between India and the US is likely to be announced soon, with India having submitted a final offer covering goods trade valued between $150 billion and $200 billion.
– Other countries, including Japan and South Korea, are also engaged in trade talks with the US to avoid or minimize the tariffs.
