Trump’s new tariffs: Who is hit, what’s next, how is the world responding?

United States President Donald Trump connected Monday extended a pause connected his sweeping reciprocal tariffs to August 1, portion besides sending “tariff letters” to immoderate countries, informing they would beryllium taxable to caller tariff rates if they failed to scope a commercialized woody with the US by the caller deadline.

Here is what is going connected with Trump’s reciprocal tariffs, and what his tariff letters say:

What has Trump announced?

On Monday, the White House released a information expanse saying Trump signed an enforcement bid extending the tariff pause.

The intermission was primitively scheduled to extremity connected Wednesday, July 9, for the “Liberation Day” tariffs helium initially announced connected April 2. However, Trump imposed a 90-day pause connected the steep reciprocal tariffs connected April 9. During this period, astir of the US’s trading partners faced a level 10 percent tariff.

Which countries look renewed tariffs?

The White House listed 14 countries to which Trump sent tariff letters connected Monday. These countries look these caller tariff rates if they neglect to scope a commercialized woody with the US by August 1.

The renewed tariff rates for these countries announced connected Monday are:

• Japan: 25 percent, 24 percent connected April 2.
• South Korea: 25 percent, 25 percent connected April 2.
• South Africa: 30 percent, 30 percent connected April 2.
• Kazakhstan: 25 percent, 27 percent connected April 2.
• Laos: 40 percent, 48 percent connected April 2.
• Malaysia: 25 percent, 24 percent connected April 2.
• Myanmar: 40 percent, 44 percent connected April 2.
• Tunisia: 25 percent, 28 percent connected April 2.
• Bosnia and Herzegovina: 30 percent, 35 percent connected April 2.
• Indonesia: 32 percent, 32 percent connected April 2.
• Bangladesh: 35 percent, 37 percent connected April 2.
• Serbia: 35 percent, 37 percent connected April 2.
• Cambodia: 36 percent, 49 percent connected April 2.
• Thailand: 36 percent, 36 percent connected April 2.

For South Africa, South Korea, Thailand and Indonesia, these tariff rates are identical to what Trump had announced connected April 2.

Malaysia and Japan look a 25 percent tariff, up 1 percent from the 24 percent tariff announced connected April 2.

But astir of the countries – Kazakhstan, Laos, Myanmar, Tunisia, Bosnia and Herzegovina, Bangladesh, Serbia and Cambodia – targeted by Trump connected Monday present look little tariffs than they did connected April 2.

What bash Trump’s tariff letters say?

Trump posted the tariff letters helium sent to leaders of the 14 countries connected his Truth Social level connected Monday.

In these letters, helium expressed concerns astir the commercialized imbalance betwixt the US and the countries the letters are addressed to. Trump said companies that determination their accumulation to the US would beryllium exempt from tariffs. But helium besides held retired a threat: If countries enforce retaliatory tariffs, they could look inactive higher tariffs from the US.

And helium held retired the imaginable of a alteration successful tariff rates. Trump ended each his letters with: “These Tariffs whitethorn beryllium modified, upward oregon downward, depending connected our narration with your Country. You volition ne'er beryllium disappointed with The United States of America.”

Why is helium threatening the BRICS?

On Sunday, Trump also threatened the BRICS bloc with further tariffs aft the bloc, during its 17th acme successful Brazil, indirectly criticised the US’s commercialized war, arsenic good arsenic its caller subject onslaught connected Iran.

“Any Country aligning themselves with the Anti-American policies of BRICS, volition beryllium charged an ADDITIONAL 10% Tariff,” Trump wrote connected Truth Social.

BRICS is named for its founding members, Brazil, Russia, India and China, and South Africa, which joined a twelvemonth later. But it has grown to see different countries, specified arsenic Indonesia, Egypt, Iran, Ethiopia and the United Arab Emirates.

How galore deals are already successful spot with the US?

During the 90-day pause, the US brokered deals with 2 of its trading partners: the United Kingdom and Vietnam.

The archetypal woody was secured connected May 8, betwixt the US and the UK, mounting a 10 percent tariff connected UK exports to the US. The woody states that the archetypal 100,000 vehicles imported into the US from the UK each twelvemonth volition look a 10 percent tariff, down from the 27.5 percent imposed earlier.  Additional vehicles imported each twelvemonth volition look a 25 percent tariff.

On July 2, Trump announced that helium had secured a deal with Vietnam, which present faces a minimum 20 percent tariff successful speech for opening its marketplace up to the US. Transshipments from 3rd countries done Vietnam volition look a 40 percent levy, portion US products volition not look immoderate tariff successful Vietnam. Specific details for this woody are unclear. On April 2, Trump had announced a 46 percent tariff connected Vietnam.

When the intermission was archetypal announced, Trump medication officials had hinted that Washington was seeking a greater fig of commercialized deals. “We’re going to tally 90 deals successful 90 days. It’s possible,” White House commercialized advisor Peter Navarro told Fox Business Network backmost successful April.

Between past and now, Trump expressed pessimism astir imaginable commercialized deals with immoderate of the US partners. “We’ve dealt with Japan. I’m not definite if we’re gonna marque a deal, I uncertainty it, with Japan,” Trump told reporters connected July 1. “They and others are truthful spoiled from having ripped america disconnected for 30, 40 years that it’s truly hard for them to marque a deal.”

Trump medication officials person indicated that stop-gap deals with India and perchance the European Union could beryllium imminent.

How person the targets of Trump’s renewed tariffs reacted?

Japan and South Korea person said connected Tuesday that they would effort to scope deals with Trump to trim the effect of US tariffs connected their economies.

Japan’s main commercialized negotiator and system minister, Ryosei Akazawa, told a quality league connected Tuesday that helium is seeking concessions for Japan’s automobile manufacture but would not compromise connected its agriculture sector. This is akin to the stance Japan has maintained erstwhile it comes to commercialized negotiations with the US.

“There’s nary constituent striking a woody with the US without an statement connected automobile tariffs,” Akazawa said.

The agriculture assemblage has traditionally been a important voting bloc for Japanese Prime Minister Shigeru Ishiba‘s Liberal Democratic Party, and elections to Japan’s precocious location successful parliament are scheduled for July 20.

Akazawa said helium had spoken with US Commerce Secretary Howard Lutnick and they had agreed to proceed negotiations.

“The 2 countries indispensable garner spot done sincere dialogue, and scope communal crushed measurement by step. Through specified a process, my occupation arsenic negotiator is to hold connected a afloat bundle arsenic soon arsenic possible,” Akazawa said.

The US is Japan’s largest export market, accounting for 19.1 percent of full Japanese exports successful 2023, according to the Observatory of Economic Complexity (OEC).

Japanese automobile exports to the US unsocial contributed astir 1 percent to Japan’s gross home merchandise (GDP) successful 2023.

South Korea said it excessively would measurement up commercialized talks with the US.

“We besides program to usage it arsenic an accidental to amended home systems and regulations to resoluteness the commercialized shortage that is simply a large involvement of the United States,” South Korea’s Ministry of Trade, Industry and Energy said successful a connection connected Tuesday.

By contrast, South Africa’s President Cyril Ramaphosa was much captious of the 30 percent tariff imposed by Trump connected his country, deeming it “unilateral” successful a connection published connected the presidency’s X relationship connected Tuesday.

“South Africa maintains that the 30 percent reciprocal tariff is not an close practice of disposable commercialized data,” the connection said. “In our mentation of the disposable commercialized data, the mean tariff imported goods entering South Africa stands astatine 7.6 percent.”

The connection added that 77 percent of US goods participate the South African marketplace nether a zero percent duty.

“South Africa volition proceed with its diplomatic efforts towards a much balanced and mutually beneficial commercialized narration with the United States. We invited the committedness by the US government, that the 30 percent tariff is taxable to modification astatine the backmost of the decision of our negotiations with the United States.”

Tensions betwixt the US and South Africa person surged successful caller months.

During a gathering with Ramaphosa successful the White House successful precocious May, Trump accused South Africa of “genocide” against achromatic Afrikaners, a assertion that was denied by Ramaphosa and that has been wide discredited.

Earlier successful May, a formation of achromatic South Africans flew into the US arsenic portion of a relocation program devised by the Trump administration.

How person markets reacted?

US stocks, based connected the 3 large indices, fell connected Monday.

The Dow Jones Industrial Average fell by 0.94 percent; S&P 500, which tracks the banal show of 500 starring US companies, fell by 0.79 percent; and the Nasdaq Composite saw a 0.92 percent drop.

What are the cardinal upcoming dates for the tariffs?

The upcoming dates, important to the commercialized war, to look retired for are:

• July 9: This is the archetypal White House deadline for erstwhile countries needed to scope commercialized deals with the US oregon look steep tariffs. Trump and his squad are expected to denote those tariff rates for respective countries coinciding with the extremity of that deadline. It is besides the day Trump acceptable for the US and EU to scope a woody to region a 50 percent tariff connected each EU imports.
• July 14: On April 9, the EU had announced that it would enforce retaliatory tariffs connected the US against US tariffs connected EU alloy and aluminium imports. However, the national announced a 90-day intermission to these retaliatory tariffs erstwhile Trump announced the 90-day intermission to the reciprocal tariffs. On July 14, the 90-day intermission announced by the EU is acceptable to end.
• August 1: This is erstwhile the accrued retaliatory tariffs imposed by the US connected its trading partners are slated to travel into effect, if these countries neglect to scope commercialized deals with the US.