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US President postpones reciprocal tariffs but announces new country-specific rates

Jul 9, 2025 United States

Donald Trump has officially delayed imposing higher tariffs on US imports until the 1st of August, and has sent letters to 14 countries detailing the levies they face, including Japan and Korea

The latest development comes as the 90-day pause the White House placed on some of its most aggressive import taxes was set to expire this week.

According to a press release from the White House, Japan, South Korea, Kazakhstan and Malaysia are set to face a 25% tariff on goods exported to the US. Bosnia and Herzegovina and South Africa will face a 30% tariff, Indonesia a 32% tariff, Bangladesh and Serbia a 35% tariff, Cambodia and Thailand a 36% tariff, and Myanmar and Laos a 40% tariff. These levies will come into effect on the 1st of August.

Several economists and analysts believe that this announcement is intended to maximise the country’s negotiating leverage for reaching an agreement before the new deadline. When asked by a reporter whether the new August deadline was set in stone, Trump replied: “I would say firm, but not 100% firm. If they call up and they say we’d like to do something a different way, we’re going to be open to that”.

Some of the targeted countries, including Japan, Thailand and Malaysia, have expressed a willingness to continue discussions with the US in order to reach more favourable agreements. While South Africa’s president, Cyril Ramaphosa, said that diplomatic efforts would continue, he urged local businesses to accelerate their diversification efforts.

South Korea’s finance ministry stated that it would closely monitor the situation, and warned that if market fluctuations became excessive, it would take immediate and bold action based on its contingency plans. However, it did not specify what these actions would entail (cnn.com).

Image Credits: fortune.com

United States Economy International Trade Tariffs Trump tariffs