President Donald Trump sent a strong message Monday to several U.S. trading partners, issuing formal letters that detailed new import tariffs while extending the deadline for their implementation to August 1.
The White House said Trump signed an executive order postponing the start of “reciprocal” tariffs — initially set to take effect on Wednesday — to allow more time for talks. The delay applies to all targeted countries except China, which remains under separate trade measures.
Japan and South Korea were the first to receive the updated tariff notifications, each facing a 25 percent rate. Officials from both nations confirmed they would continue negotiations with Washington in hopes of reaching a trade agreement. Tokyo expressed regret over the tariffs, while Seoul said it was prepared to take action if market volatility intensified.
In total, Trump sent letters to leaders of 14 nations on Monday, including Malaysia, South Africa, Kazakhstan, Laos, Myanmar, Tunisia, Indonesia, Cambodia, Bangladesh, Serbia, and Bosnia and Herzegovina. Tariff rates in the letters ranged from 24 to 40 percent.
Trump cited ongoing trade deficits and barriers that he said prevent U.S. goods from competing fairly overseas. He urged foreign companies to manufacture within the United States to avoid penalties. The White House emphasized that these tariffs would not be layered on top of existing sector-specific ones, such as the 25 percent levy on vehicles.
The tariffs target countries that collectively exported $465 billion in goods to the U.S. last year, with Japan and South Korea accounting for more than half of that total. Affected imports include cars, semiconductors, pharmaceuticals, and apparel — items that could see price hikes if the tariffs move forward.
Markets reacted swiftly. U.S.-listed shares of Japanese automakers tumbled following the announcements. Toyota slid 4 percent, Nissan fell over 7 percent, and Honda dropped nearly 4 percent. Analysts pointed to the threat of future auto-specific tariffs if affected countries retaliate.
The Dow Jones Industrial Average closed down 422 points, or 0.94 percent. The S&P 500 and Nasdaq also lost ground, marking their worst performances in nearly a month.
Although Trump has often criticized the European Union’s trade policies, the bloc did not receive a tariff letter. A European Commission spokesperson declined to comment, while Ireland’s foreign minister said the current pause appears to give both sides more time to work toward an agreement.
Trump left the door open for adjustments. “I would say firm, but not 100 percent firm,” he told reporters, hinting that countries could still propose alternative arrangements before the new deadline.
In each letter, Trump ended with a warning: the tariffs could go higher if any country responds with its own trade barriers.
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