whatsapp

Trump Delays New Tariffs Until August 1, But Says Talks Are Still Open

  • 0
  • 108
/media/GTN_5_3cgjqIt.webp © Image Copyrights Title

U.S. President Donald Trump has officially announced a new round of tariffs on dozens of countries, but says he's still open to negotiating. The increased import duties won’t begin until August 1, giving trade partners a short window to make a deal.

The new tariffs are part of what Trump calls a “reciprocal” trade policy. Countries like Japan, South Korea, South Africa, Indonesia, Thailand, and Cambodia are among the first to receive letters informing them of higher duties. Rates vary by country, some as high as 40%.

“We’re close to making a deal with India,” Trump said during a White House briefing. “Others we don’t expect to reach a deal with, so we just send them a letter.”

Despite the tough talk, Trump made it clear the August 1 deadline is not final. He said rates might still be adjusted “depending” on how other countries respond.

What’s Changing

  • Tariffs on dozens of countries, ranging from 25% to 40%

  • Countries like Japan and South Korea targeted first

  • Delays until August 1 allow room for last-minute negotiations

  • More letters are coming, according to the White House

White House Press Secretary Karoline Leavitt confirmed that Trump has already signed an executive order delaying the tariff start date. She also warned countries not to retaliate, quoting Trump’s letter:

“If you raise your tariffs, we will add that amount to our own.”

How Markets Reacted

The announcement had an immediate effect on financial markets:

  • The S&P 500 and Nasdaq 100 both fell 0.8%

  • U.S. Treasuries dropped

  • The U.S. dollar strengthened, while currencies like the yen, won, and rand lost value

  • Shares of Japanese carmakers like Toyota and Honda fell sharply

Economists and U.S. business groups were quick to respond. Critics say the new tariffs will hurt American businesses and consumers, not foreign governments.

“These tariffs are just a tax on U.S. companies,” said Jonathan Gold from the National Retail Federation.

Who’s Affected?

Among the countries receiving tariff letters:

  • Japan, South Korea – 25%

  • Malaysia, Kazakhstan, Tunisia – 25%

  • South Africa, Bosnia – 30%

  • Serbia, Bangladesh, Cambodia, Thailand – 35%–36%

  • Laos, Myanmar – 40%

Trump also hinted at future tariffs on BRICS countries (Brazil, Russia, India, China, South Africa) if they align with what he called “anti-American policies.”

Some countries may find it hard to respond quickly. South Korea’s new president, Lee Jae-myung, just took office in June, and Japan faces elections later this month.

The European Union was not on the list, though more letters are expected in the coming days.

Legal and Political Challenges

Trump is using two different legal tools to implement these tariffs:

  1. IEEPA – which allows emergency economic measures

  2. Section 232 – targeting specific industries like autos, steel, and aluminum

A U.S. court ruled in May that many of the tariffs under IEEPA were illegal, but an appeals court has allowed them to remain in place while the case proceeds. Arguments are scheduled for July 31.

Meanwhile, economists say the bigger concern is inflation. With tariffs, rising oil prices, and tighter immigration policies, costs may go up for consumers.

“The bottom line is we’ll likely see inflation rise over the next few months,” said Torsten Slok, chief economist at Apollo Global Management.

What This Means for the U.S.

If all of Trump’s tariffs take effect as proposed, average U.S. duties on imports could rise from less than 3% to nearly 20%,  a massive jump that could strain businesses, raise consumer prices, and increase uncertainty across the global economy.

Related Posts
© Binance Launches Sharia-Compliant Crypto Product in UAE and 28 Countries

Binance Launches Sharia-Compliant Crypto Product in UAE and 28 Countries

Dubai – Binance has entered the Islamic finance space with the launch of Sharia Earn, a blockchain-based crypto product certified as Sharia-compliant. The offering, now available in 29 countries, is a...

  • 97
© Dubai’s Emirates Airlines Signs Preliminary Deal to Integrate Crypto Payments

Dubai’s Emirates Airlines Signs Preliminary Deal to Integrate Crypto Payments

Dubai – Emirates Airlines has signed a preliminary agreement to explore the integration of cryptocurrency into its payment systems, marking a strategic move toward embracing digital assets in the avi...

  • 93
© Linda Yaccarino Resigns as CEO of Elon Musk’s X After Two Tumultuous Years

Linda Yaccarino Resigns as CEO of Elon Musk’s X After Two Tumultuous Years

Dubai – Linda Yaccarino has stepped down as CEO of X, the social media platform formerly known as Twitter, after a transformative but often controversial two-year tenure under Elon Musk’s ownership....

  • 85
© Trump Threatens to Impose Up to 200% Tariff on Imported Pharmaceuticals

Trump Threatens to Impose Up to 200% Tariff on Imported Pharmaceuticals

President Donald Trump on Tuesday threatened to impose tariffs as high as 200% on pharmaceuticals imported into the United States, warning the levies could take effect “very soon,” though not immediat...

  • 100
© China’s Producer Prices Fall 3.6% in June, Deepest Drop Since 2023

China’s Producer Prices Fall 3.6% in June, Deepest Drop Since 2023

China’s producer price index (PPI) dropped 3.6% in June from a year earlier, the sharpest decline since July 2023, official data showed Wednesday, deepening concerns over deflation as price wars and w...

  • 87
© Oil Declines as Traders Weigh US Tariffs and OPEC+ Production Decisions

Oil Declines as Traders Weigh US Tariffs and OPEC+ Production Decisions

Oil prices dropped for the third time in four trading sessions as investors weighed the effects of renewed U.S. tariff threats and the decision by OPEC+ to increase output starting next month. Global ...

  • 120
© U.S. Payrolls Rise by 147,000 in June, Beating Forecasts and Cooling Hopes for July Rate Cut

U.S. Payrolls Rise by 147,000 in June, Beating Forecasts and Cooling Hopes for July Rate Cut

Washington, D.C.: The U.S. economy added 147,000 jobs in June, exceeding Wall Street’s expectation of 110,000 and signaling continued resilience in the labor market, despite slowing momentum in parts ...

  • 101
© Trump Threatens 10% Tariff on Nations Aligning With BRICS Policies

Trump Threatens 10% Tariff on Nations Aligning With BRICS Policies

Des Moines, Iowa: U.S. President Donald J. Trump has announced a new trade policy that would impose an additional 10% tariff on any country “aligning themselves with the anti-American policies of BRIC...

  • 104
© US Debt Hits $37 Trillion: Should Americans Be Concerned?

US Debt Hits $37 Trillion: Should Americans Be Concerned?

Washington — As President Donald Trump celebrates the passage of his “Big Beautiful Budget Bill,” concern over America’s growing debt is rising again. The U.S. national debt has officially hit $37 tri...

  • 110
© One in 10 Cars Sold in UK Now Made in China, Industry Data Shows

One in 10 Cars Sold in UK Now Made in China, Industry Data Shows

London — One in every ten cars sold in the UK last month was made in China, as electric vehicle demand and tariff-free access help Chinese automakers expand their market share....

  • 107
Commnets 0
Leave A Comment