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Trump Sets 25–40% Reciprocal Tariffs on 14 Trading Partners Starting August 1

Relief hinges on partners shifting production to the United States under a hard August 1 deadline that pressures nations still negotiating.

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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

  • The White House dispatched letters to 14 countries outlining tariffs between 25% and 40% on imports from August 1 under Trump’s reciprocal trade plan.
  • Japan, South Korea, Malaysia and Kazakhstan face 25% levies, South Africa 30%, and Laos and Myanmar 40% unless they onshore production or cut trade barriers.
  • Washington warned that any retaliatory duties will trigger automatic doubling of US tariffs on offending imports.
  • Only the United Kingdom and Vietnam have clinched tentative trade pacts so far as the European Union scrambles to finalise an agreement before its July 9 self-imposed deadline.
  • Global markets responded with muted gains in Asia and mixed performance in Europe and the US as investors assess the escalated tariff threats.