Trump Announces New Tariffs of Up to 40% On a Growing Number of Countries

July 8, 2025

President Donald Trump has sent letters to leaders of 14 countries announcing new tariff rates set to take effect on August 1, extending the previous July 9 deadline for most countries except China. The letters, sent to nations including Japan, South Korea, Malaysia, and others, impose tariffs ranging from 24% to 40%, with Trump specifically citing trade deficits as justification. Trump warned that tariffs could increase further if countries retaliate with their own tariffs, while encouraging foreign leaders to manufacture goods in the United States to avoid these duties.

Who is affected

Consumers in the United States who may face higher prices on imported goods
Companies and industries in the 14 countries receiving tariff letters (Japan, South Korea, Malaysia, Kazakhstan, South Africa, Myanmar, Laos, Tunisia, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia, and Thailand)
U.S. stock market investors, as evidenced by the decline in major indexes
Automobile manufacturers with production in Japan and South Korea, whose shares dropped significantly
Industries producing cars, auto parts, semiconductors, pharmaceuticals, machinery, platinum, and apparel

What action is being taken

President Trump is sending letters to 14 country leaders announcing new tariff rates
Trump is signing an executive action extending the implementation date for "reciprocal" tariffs to August 1
The U.S. is imposing country-specific tariff rates ranging from 24% to 40%
Trump is threatening to raise tariffs even higher if countries retaliate with their own tariffs
Financial markets are responding with significant declines, with the Dow dropping 422 points (0.94%)

Why it matters

The tariffs could translate to higher prices for American consumers on imported goods
These actions impact significant trade relationships, as collectively the US purchased $465 billion worth of goods last year from the 14 countries receiving letters
The tariffs target critical imports including semiconductors (Malaysia supplied $18 billion worth last year), platinum (South Africa was the top foreign supplier), and apparel (from Bangladesh, Indonesia, and Cambodia)
Trump's trade policies are creating immediate market volatility, with the three major stock indexes posting their worst day in about three weeks
The targeted countries produce essential goods for American consumption, with Japan and South Korea alone accounting for $280 billion in imports to the US last year

What's next

No explicit next steps stated in the article

Read full article from source: The San Diego Voice & Viewpoint