Trump Announces New Tariffs on Seven Countries, Rates Range from 25% to 40%

President Donald Trump has announced that he will reveal trade-related matters involving at least seven countries tomorrow morning, with additional countries to be addressed in the afternoon. This announcement comes as Trump intensifies pressure on America’s trading partners by sending letters to the heads of several countries, informing them of new tariff rates. The letters, sent on Monday, specify new “reciprocal” tariff rates that are higher or lower compared to April levels. These tariffs are set to take effect on August 1, with the exception of China. Trump also signed an executive action to extend the deadline for all “reciprocal” tariffs to August 1, which were initially expected to go into effect on Wednesday.

The letters were sent to Japan, South Korea, Malaysia, Kazakhstan, South Africa, Myanmar, Laos, Tunisia, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia, and Thailand. The tariff rates range from 25% to 40%, with some countries facing higher rates than others. For example, Japan and South Korea will face a 25% tariff, while Bosnia and Herzegovina will face a 30% tariff. Trump took particular issue with the trade deficits the United States runs with these countries, meaning America buys more goods from them compared to the amount that American businesses export to those countries. He also said the tariffs would be set in response to other policies that he deems are impeding American goods from being sold abroad.

Trump encouraged country leaders to manufacture goods in the United States to avoid tariffs. He also threatened to raise tariffs even higher than the specified rates if a country retaliated against the United States with tariffs of their own. These rates would be “separate from all Sectoral Tariffs,” meaning they would not be stacked on top of current sector-specific tariffs.

Many of the nations that have received the letters have welcomed the extension of the deadline and appear eager to continue discussions with the US to strike better deals. Japan’s Prime Minister Shigeru Ishiba convened a cabinet task force and voiced Tokyo’s deep “regret that the U.S. government has imposed additional tariffs and announced plans to raise tariff rates.” He said the country would continue negotiations with the United States to seek a bilateral trade deal that benefits both countries. South Korea’s finance ministry said in a statement that it would monitor developments closely, but warned that if market fluctuations become “excessive” the government would “take immediate and bold action in accordance with its contingency plans.”

Thailand is still facing tariffs at the higher end, at 36%, but its finance minister Pichai Chunhavajira told reporters that he’s confident Bangkok will be able to negotiate a more competitive levy, saying it has submitted a proposal to the US in “good faith.” Malaysia, facing a 25% tariff rate, also plans to “continue discussions” with the US to reach a “balanced and mutually beneficial trade agreement.” South Africa’s president Cyril Ramaphosa said diplomatic efforts would continue, but urged local businesses to accelerate their diversification efforts. He also said that the US had based the 30% tariff rate for South Africa on an “inaccurate representation” of trade data.

The prospect of higher tariffs on goods could translate into higher prices for American consumers. Among the top goods America imports from South Korea and Japan are cars, auto parts, semiconductors, pharmaceuticals, and machinery. Trump has placed or threatened to levy industry-specific tariffs on many of these goods. In April, Japan was set to face a 24% tariff, while South Korea was set to face a 25% tariff. Now, both face the same 25% rate. While the other countries ship less to the US compared to Japan and South Korea, in many cases they are among the top foreign sources of goods. For instance, South Africa, which is set to face 30% tariffs, accounted for roughly half of the platinum the US imported from other countries last year and was the top foreign supplier of it. Malaysia, which is set to face a 24% tariff, was the second-top source of semiconductors shipped to the US last year. Meanwhile, Bangladesh, Indonesia, and Cambodia are top manufacturing hubs for apparel and accessories. Trump’s letter to Cambodia’s prime minister threatened a tariff rate of 36%, 13 percentage points lower than what had been in place in April, before it was paused.