Trump Extends Tariff Deadline To August As He Announces New Tariffs
President Donald Trump announced the first in a series of letters threatening higher tariffs on major trading partners, including 25% tariffs on goods from Japan and South Korea, and signed an executive order delaying the new duties until Aug. 1.
Trump also announced 25% tariffs on Malaysia, Kazakhstan and Tunisia, while South Africa will face 30% tariffs and Laos and Myanmar will face 40% tariffs. Other countries hit with tariffs include Indonesia with 32% tariffs, Bangladesh with 35% tariffs, and Thailand and Cambodia with 36% tariffs. Bosnia received 30% tariffs, while Serbia faced 35% tariffs.
The countries were the first in what the president promised would be a series of unilateral warnings and trade deals announced on Monday, two days before an agreement is due from trading partners facing so-called reciprocal levies on April 2.
“Our relationship is, unfortunately, far from Reciprocal,” Trump wrote in the letter. On Monday, he signed an executive order delaying new tariffs until Aug. 1 for all countries facing reciprocal tariffs, effectively giving each affected country an extra three weeks to work out a deal with the White House.
His rush to overhaul U.S. trade policy in his second term has been a steady source of uncertainty for markets, central bankers and executives trying to work out the impact on production, inventories, hiring, inflation and consumer demand — routine planning that is difficult enough without the costs of tariffs that go into effect one day and are gone the next.
The letters so far appear to be largely a new method of once again delaying the looming July 9 deadline for so-called “reciprocal” tariffs until at least early August. Most of the tariffs, shared on his Truth Social platform, are largely in line with what Trump has already announced countries will face. White House Press Secretary Karoline Leavitt said about a dozen countries would receive notice of their tariffs on Monday directly from the president.
More letters will arrive in the coming days, he said. The episode was the latest twist in a program that has roiled markets and trade around the world. A week after announcing the tariffs at a Rose Garden event, Trump offered a 90-day reprieve, lowering tariffs to 10% to allow time for negotiations. Few countries have been able to negotiate deals in the short time allotted.
Meanwhile, Trump announced framework agreements with the U.K. and Vietnam and a trade truce with China. At the same time, Trump warned countries against retaliating against his latest moves. “If for any reason you decide to increase Tariffs, then, whatever amount you choose to increase them will be added” to the threatened levels, Trump wrote. (alg)
Source: Bloomberg
