Overview

• Official letters notified partners that, beginning August 1, imports from Japan, South Korea, Malaysia and Kazakhstan face 25% tariffs, South Africa 30%, and Laos and Myanmar 40%.
• President Trump extended his reciprocal tariff deadline to August 1 after just two agreements materialized during the initial 90-day pause.
• The letters made clear that any increase in foreign tariffs would trigger equivalent U.S. rate hikes in response.
• U.S. equity indexes fell roughly 1% and the dollar climbed over 1% against the yen as markets reacted to the renewed trade threats.
• Treasury Secretary Scott Bessent reported a surge of last-ditch offers from countries seeking to avert the levies before the extended deadline.