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Trump Imposes Fixed 25-40% Tariffs on 14 Countries, Extends Deadline to August 1

The administration is extending its tariff deadline to August 1 to pressure partners into trade concessions through fixed 25-40 percent reciprocal duties.

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A truck driver works in front of shipping containers stacked up at Pusan Newport Terminal in Busan, South Korea, July 1, 2021. Picture taken on July 1, 2021. REUTERS/Kim Hong-Ji/File Photo
Thailand's new Finance Minister and Deputy Prime Minister Pichai Chunhavajira reacts on the day of the cabinet meeting at Thai Government House in Bangkok, Thailand, May 7, 2024. REUTERS/Chalinee Thirasupa/File Photo

Overview

  • Only two reciprocal agreements with the United Kingdom and Vietnam have been finalized, and a framework deal with China remains under negotiation.
  • US stocks closed lower after the announcements, with the Dow down 0.94 percent and the S&P 500 down 0.79 percent, while indices in Tokyo and Seoul rose on optimism about talks.
  • Trump’s letters specify equivalent tariff hikes for any country that increases its duties and threaten an additional 10 percent levy on BRICS nations aligning with anti-American policies.
  • Major partners such as the European Union are racing to secure accords by the original July 9 target to avoid steep levies, with EU officials reporting positive exchanges.
  • Economists warn that prolonged uncertainty and higher duties could drive up consumer prices, disrupt global supply chains and raise recession risks.