U.S. President Donald Trump has reignited trade tensions by threatening to impose steep tariffs on more than a dozen countries, including key allies Japan and South Korea, but later suggested that the new August 1 deadline for trade deals could be adjusted.
In letters sent Monday, Trump announced that suspended tariffs would resume — and at even higher rates — in three weeks. Japan and South Korea face 25% tariffs, while other nations such as Indonesia, Bangladesh, Thailand, South Africa, and Malaysia were hit with duties ranging from 25% to 40%.
Despite the aggressive stance, Trump signaled some wiggle room. “I would say firm, but not 100% firm,” he said when asked if the August 1 deadline was final. “If they call with a different offer, and I like it, then we’ll do it,” he added during a dinner with Israeli Prime Minister Benjamin Netanyahu.
The new tariffs follow Trump’s “Liberation Day” tariff announcement on April 2, where he initially imposed a 10% baseline duty on all countries but paused higher rates for 90 days after market unrest. The Wednesday deadline for those tariffs to resume has now been officially pushed to August 1.
Trump’s letters described the U.S. trade relationship with Japan and South Korea as “far from reciprocal,” warning of further action if those nations retaliate. Tariffs announced for other countries include 32% for Indonesia, 35% for Bangladesh, and 36% for Thailand. Some countries, like Laos and Cambodia, received more lenient terms.
So far, the administration has finalized deals only with the UK and Vietnam and eased tariff tensions with China, despite its promise of “90 deals in 90 days.”
Reactions from targeted countries have been swift. Japan’s Prime Minister Shigeru Ishiba called the move “genuinely regrettable,” while South Korea’s national security adviser met with U.S. officials to seek a more favorable resolution. Thailand’s acting PM also pushed for a “better deal,” stressing the importance of strong U.S.-Thailand ties.
The EU said its chief, Ursula von der Leyen, had a “good exchange” with Trump about trade over the weekend.
The fresh tariff threats rattled U.S. markets on Monday, with the Nasdaq falling 0.9% and the S\&P 500 losing 0.8%. Trump also warned of an additional 10% tariff on nations aligning with BRICS, accusing them of promoting “anti-American policies.”
U.S. Treasury Secretary Scott Bessent promised more trade agreements would be announced in the coming days.
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