Trump Trade 2.0: Trump's Trade Letters Hit the InboxReciprocal Tariff Increases Shift to August 1 On July 7, the White House announced that President Trump will delay the reimposition of tariffs from July 9 to August 1, offering a brief reprieve as trade negotiations continue. In the meantime, 12 additional countries or trading blocs will receive formal letters outlining new tariff rates unless alternative agreements are reached, with all letters to be posted publicly on Trump’s Truth Social account. At a press briefing, Press Secretary Karoline Leavitt emphasized that these letters are unilateral notices and part of Trump’s “tailor-made” trade strategy. Although the administration had promised “90 deals in 90 days,” only two agreements (Vietnam and the UK) have been finalized so far. Trade Letters Released To Date
- South Korea: South Korea faces a 25% tariff, consistent with the announcement on Liberation Day.
- Japan: Japan faces a 25% tariff, which was previously announced as a 24% tariff on Liberation Day.
- Thailand: Thailand faces a 36% tariff, consistent with the announcement on Liberation Day.
- Indonesia: Indonesia faces a 32% tariff, consistent with the announcement on Liberation Day.
- Malaysia: Malaysia faces a 25% tariff, which was previously announced as a 24% tariff on Liberation Day.
- Cambodia: Cambodia faces a 36% tariff, which was previously announced as a 49% tariff on Liberation Day.
- South Africa: South Africa faces a 30% tariff, consistent with the announcement on Liberation Day.
- Laos: Laos faces a 40% tariff, which was previously announced as a 48% tariff on Liberation Day.
- Myanmar: Myanmar faces a 40% tariff, which was previously announced as a 44% tariff on Liberation Day.
- Kazakhstan: Kazakhstan faces a 25% tariff, which was previously announced as a 27% tariff on Liberation Day.
- Tunisia: Tunisia faces a 25% tariff, which was previously announced as a 28% tariff on Liberation Day.
- Bangladesh: Bangladesh faces a 35% tariff, which was previously announced as a 37% tariff on Liberation Day.
- Serbia: Serbia faces a 35% tariff, which was previously announced as a 37% tariff on Liberation Day.
- Bosnia and Herzegovina: Bosnia and Herzegovina face a 30% tariff, which was previously announced as a 35% tariff on Liberation Day.
- Philippines: The Philippines faces a 20% tariff, which was previously announced as a 17% tariff on Liberation Day.
- Moldova: Moldova faces a 25% tariff, which was previously announced as a 31% tariff on Liberation Day.
- Iraq: Iraq faces a 30% tariff, which was previously announced as a 39% tariff on Liberation Day.
- Sri Lanka: Sri Lanka faces a 30% tariff, which was previously announced as a 44% tariff on Liberation Day.
- Brunei: Brunei faces a 25% tariff, which was previously announced as a 24% tariff on Liberation Day.
- Algeria: Algeria faces a 30% tariff, consistent with the announcement on Liberation Day.
- Libya: Libya faces a 30% tariff, which was previously announced as a 31% tariff on Liberation Day.
- Brazil: Brazil faces a 50% tariff, which was previously announced as a 10% tariff on Liberation Day.
Japan announced Tuesday that they will pursue negotiations with the U.S. to mitigate the impact of newly imposed tariffs. Japan’s chief trade negotiator, Ryosei Akazawa, emphasized the importance of securing concessions on automobile tariffs while reaffirming that Japan would not compromise on its agricultural sector, a politically sensitive area ahead of Japan’s July 20 upper house elections. Akazawa said he spoke with U.S. Commerce Secretary Howard Lutnick and pledged continued dialogue aimed at a comprehensive deal.
South Korea also signaled it would intensify trade talks and use the moment to address regulatory concerns linked to its trade deficit with the U.S. Meanwhile, South African President Cyril Ramaphosa strongly criticized the new 30% tariff on his country’s exports, calling it “unilateral” and inconsistent with trade data that shows South Africa imposes an average tariff of just 7.6% on imported goods.
Latest on China and EU Trade Deals
China has warned against re-imposition of tariffs when the current pause ends, with threats of retaliation should the U.S. roll back the agreement. The deadline to finalize a durable deal is looming around mid-August, after which tariff levels could revert or escalate depending on negotiations. Additionally, President Trump is expected to soon announce a trade deal with the European Union after significant offers from the EU to open their markets, with Trump personally deciding tariff rates based on the deal’s balance
Other Updates
In a separate development, the administration signaled potential new tariff actions targeting countries aligned with the BRICS (Brazil, Russia, India, China, and South Africa) citing their unified criticism of U.S. trade and foreign policy. While specific tariff levels were not announced, officials suggested duties could match or exceed existing Section 232 steel and aluminum tariffs, which currently range from 10% to 25%. The warning is primarily directed at Brazil and South Africa, both of which are active BRICS members and also named in today's country-specific tariff letters. This move reflects growing tensions between the U.S. and emerging economies seeking to deepen trade ties outside the Western-led system.
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