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9 July 2025, New York and Singapore – President Donald Trump has postponed the implementation of higher tariffs on US imports, originally set to take effect on 9 July, while announcing new levies targeting 14 countries, including Japan and South Korea. The decision follows the expiration of a 90-day pause on some of the most stringent import taxes proposed by the White House.
In a series of letters shared on social media, Trump outlined tariff plans, including a 25% tax on goods from Japan and South Korea, a 40% tariff on imports from Myanmar and Laos, 36% on Thailand and Cambodia, 35% on Serbia and Bangladesh, 32% on Indonesia, 30% on South Africa, and 25% on Malaysia and Tunisia. The president indicated that these rates could be adjusted "upward or downward" based on future trade relations. Speaking to reporters, Trump described the new 1 August deadline as "firm, but not 100% firm," suggesting flexibility if countries propose alternative trade arrangements. Economist Adam Ahmad Samdin from Oxford Economics noted that the delay was expected, as trade agreements often require years to negotiate. He highlighted Vietnam’s recent deal with the US as a "broad framework" rather than a comprehensive agreement, following a similar deal with the UK. Trump’s tariff strategy aims to shield American businesses from foreign competition and boost domestic manufacturing. However, economists warn that the measures could increase US prices and disrupt trade. On Monday, US stock indexes dipped, with Toyota’s US-listed shares falling 4%. Japan, the US’s fifth-largest import supplier with $148 billion in goods last year, and South Korea, also in the top 10, face significant economic implications. **International Reactions** Japanese Prime Minister Shigeru Ishiba expressed regret over the tariff hikes but affirmed Japan’s commitment to securing a mutually beneficial deal with the US. South Korea vowed to intensify negotiations during the extended period, while Thailand’s finance minister expressed confidence in reaching an agreement to align with other nations’ tariff rates. South Africa’s President Cyril Ramaphosa criticised the "unilateral" tariffs imposed on his country. White House Press Secretary Karoline Leavitt dismissed concerns that the shifting deadlines weaken Trump’s position, stating that world leaders are actively seeking deals with the president. Treasury Secretary Scott Bessent told CNBC that new proposals from negotiating countries flooded his inbox, indicating a flurry of diplomatic activity. **Ongoing Trade Talks** The US has secured agreements with the UK, Vietnam, and a partial deal with China, though these have resulted in higher tariffs than pre-Trump levels, with key issues unresolved. Talks with India are reportedly nearing completion, while the EU, which recently avoided a threatened 50% tariff, continues negotiations. EU Commission President Ursula von der Leyen described recent discussions with Trump as productive. Trump’s trade policies, including separate tariffs on steel, cars, pharmaceuticals, and lumber, have complicated negotiations, particularly with Japan and South Korea, where car tariffs remain a sticking point. The multi-layered approach follows Trump’s April "Liberation Day" announcement, which sparked market turmoil before some duties were suspended to allow for talks. As the 1 August deadline approaches, global markets and trade partners brace for potential economic shifts, with investors hopeful that Trump’s threats signal a negotiating tactic rather than an inflexible policy.
