Trump Announces New 40% Tariffs on Countries: Here Are the Details

Former U.S. President Donald Trump has once again shaken up international trade dynamics with a sweeping announcement of new tariffs targeting 14 countries. In an aggressive push to reduce trade deficits and boost domestic production, Trump notified world leaders through formal letters that the United States will begin imposing tariffs of up to 40% starting August 1, 2025—excluding China, where tariffs remain scheduled without delay.

What Are “Reciprocal” Tariffs?

The term refers to tariffs implemented as a direct response to a country’s own trade practices, particularly those deemed by the U.S. as unfair or restrictive to American exports. These new reciprocal tariffs were initially slated to take effect earlier, but Trump signed an executive order delaying them to August 1 for all countries except China.

While exact percentages vary, the letters specified the following:

• Japan and South Korea: 25% tariffs

• South Africa: 30%

• Thailand and Cambodia: 36%

• Others, including Malaysia, Kazakhstan, Bangladesh, Indonesia, Myanmar, and Laos: Ranging from 24% to 40%

European Union countries, often targets of Trump’s past trade complaints, were notably absent from this latest round.

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Why Now?

Trump pointed to the massive trade deficits the U.S. runs with each country as the primary justification. According to him, the goal is to pressure foreign governments into shifting manufacturing operations to the U.S. and ensure American goods face fewer barriers abroad.

This announcement precedes a firm July 9 deadline Trump set earlier this year. Countries that fail to negotiate alternative trade arrangements by then may see even higher tariffs imposed.

International Reactions

• Japan convened an emergency cabinet session, calling the tariffs “regrettable” and urging negotiations.

• South Korea warned of potential market volatility and vowed to take “bold action” if needed.

• Malaysia and Thailand have already submitted counter-proposals in hopes of reducing the imposed rates.

• South Africa’s President labeled the tariff calculations “inaccurate” and encouraged domestic companies to pivot toward diversification.

Many of the affected nations welcomed the deadline extension to August 1, viewing it as a window for more productive talks.

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Economic Impact on the U.S.

Collectively, the 14 countries exported over $460 billion worth of goods to the U.S. last year. Tariffs on this scale could significantly raise costs for American importers and consumers. Sectors expected to be affected include:

• Automotive: Cars and parts from Japan and South Korea

• Technology: Semiconductors from Malaysia

• Pharmaceuticals and machinery

• Apparel: Clothing and accessories from Bangladesh and Cambodia

• Precious metals: Platinum from South Africa

While Trump claims these actions protect American jobs and manufacturing, critics argue they risk raising consumer prices and disrupting supply chains.

FAQs

1. When do the new tariffs take effect?

The new tariff rates will be implemented on August 1, 2025, except for China, which remains under an earlier deadline.

2. Which countries are affected by the new tariffs?

Fourteen countries, including Japan, South Korea, South Africa, Malaysia, Indonesia, Cambodia, and others.

3. How high can the tariffs go?

Up to 40%, depending on the country and its trade practices with the U.S.

4. Will this impact consumer prices in the U.S.?

Yes. Goods like cars, clothing, and electronics may become more expensive due to higher import costs.

5. Can these tariffs be reversed?

Possibly. Trump indicated that negotiations could lead to revised or lifted tariffs before the August 1 deadline.