Trump's Tariff Bombshell: Who's Hit, What's At Stake And How Nations Are Reacting
White House officials confirmed to Al-Jazeera that tariffs announced on April 2 were suspended on April 9 for 90 days. They now resume August 1 under an executive order signed by Trump.
The countries facing these renewed duties include Japan and South Korea at 25 percent each, South Africa at 30 percent, Laos and Myanmar at 40 percent and others with rates ranging from 25 percent to 40 percent. Some rates, according to Reuters, like those for Kazakhstan and Bangladesh are lower than what was originally planned, while Malaysia and Japan saw slight increases.
Trump posted the full letters on Truth Social. He raised concerns about trade imbalances and offered exemptions for companies that shift production to the United States. He warned that any retaliatory tariffs by those nations could trigger even steeper U.S. rates. He also emphasised flexibility, promising to adjust rates 'upward or downward' depending on each country's relationship with America.
The United States also issued a separate warning to BRICS nations, threatening an additional 10 percent tariff on countries aligning with anti‑American positions during the group's summit in Brazil.
Some partners have reacted. Japan's Trade Minister said Tokyo will negotiate, especially on automobiles, but will protect its agricultural interests, according to Reuters.
South Korea, as reported by apnews.com, announced steps to address the trade shortfall with America. South Africa expressed strong objections, calling the 30 percent tariff unjustified and promising to pursue more diplomatic resolutions.
Markets responded with mixed signals on Monday. U.S. equities dipped slightly – Dow down nearly 1 percent, S&P 500 off by 0.8 percent and Nasdaq down 0.9 percent. Asian markets remained relatively stable.
The Indian rupee strengthened slightly after India was excluded from the tariff list, while other Asian currencies held steady, Reuters reported.
Two interim trade deals have already materialised. In May, a U.S.-U.K. agreement fixed a 10 percent tariff on initial U.K. vehicle exports, rising later to 25 percent. Then in early July, the United States reached terms with Vietnam, setting a minimum 20 percent U.S. tariff and a 40 percent charge on rerouted goods, Al-Jazeera reported.
The looming deadline carries high stakes. Trump called it 'firm' but allowed for negotiation if leaders reach out with new proposals, according to Politico.
Experts warn the strategy reflects his aggressive blend of negotiation through pressure and brinkmanship. Some commentators refer to this approach as the 'TACO' trade – Trump Always Chickens Out – highlighting his pattern of issuing threats and then delaying.
Key dates to watch: July 9 was the original deadline, now superseded. July 14 ends the EU's suspension of retaliatory tariffs. August 1 is the new trigger date for U.S. measures.
Negotiators in Washington suggest possible deals with India and the European Union could still emerge before that. But partners remain cautious. Stock markets jitter at any sign of prolonged trade tension.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
27 minutes ago
- Indian Express
‘Bangladesh was never a friend, all must come together to fight illegal immigration': Tipra Motha founder Pradyot Kishore to non-tribals
In an apparent bid to reach out to non-tribals, especially Bengalis who form nearly 70 per cent of Tripura's population, Tipra Motha supremo Pradyot Kishore Manikya Debbarma Friday said all residents of the state should come together to combat illegal migration. 'I want to tell something to the people of Tripura that Bangladesh was never our friend. In the 80s, 90s, early 2000s… our Tiprasa youths were invited and were provided with arms, camps… by whom? Bangladesh… Today, Bangladesh is fomenting anti-India sentiments since the departure of Sheikh Hasina… I expect all of you, not just Tiprasa but everyone, to come together and fight against illegal migration,' Debbarma said in an audio message. He further alleged that illegal migrants from Bangladesh change their names to get Aadhaar cards and then settle not just in Tripura but also in other states like Assam, Uttar Pradesh, Bihar, Maharashtra, etc. 'When I am speaking against illegal Bangladeshis, I am not speaking against you (non-tribals). I am speaking against those who enter India and try to weaken our country. Tiprasa alone can't fight this battle; I need your help… We can do this only when we set aside our personal differences and go ahead… This is not a fight for politics. This is the fight to save our next generation,' the Tipra Motha founder said. A few days ago, Debbarma had urged the Election Commission of India (ECI) to follow the Bihar model of revision of electoral rolls in the Northeast, especially Tripura. He also said the party would seek a meeting with ECI officials in Delhi to discuss the matter. Citing reports of a popular TV channel, Debbarma said the ECI conducted a local survey in Bihar and came to know that many illegal migrants from Bangladesh and Myanmar, among others, have become voters. 'The same exercise should be conducted in Northeast India… I fail to understand why Bihar is important and the Northeast is not for ECI. Aren't we also children of India? Time for Tipra Motha MLAs to write to EC to do the same here. I request all our northeastern brothers and sisters to put the same pressure on your regional parties to do the same!' Debbarma wrote on his social media page.
India.com
27 minutes ago
- India.com
Bad news for Tata group employees, this Ratan Tata company to sack hundreds in…, decision to affect….
Tata Motors-owned Jaguar Land Rover (JLR) on Thursday announced plans to reduce its managerial workforce by several hundred positions through a 'limited' voluntary redundancy program. The move is aimed at aligning its leadership structure more closely with the company's evolving business strategy in the luxury automotive segment. The UK-based car manufacturer, which has been under pressure from US President Donald Trump's tariff wars, welcomed the recent trade deal that eases some pressure on its automotive exports to the American market. Tata Motors Layoff The number of jobs set to be hit is estimated at around 500 amid high American tariffs which were cut to 10 per cent under the US-UK trade agreement, a rate only covering cars made in the UK. The trade deal terms also cap total annual car exports to the US at 100,000 models, with the higher rate applying to any vehicles crossing that mark. British Prime Minister Keir Starmer had chosen the UK headquarters of JLR in the West Midlands region to deliver a key speech back in May to reassure staff amid the US trade wars. As news of the job cuts emerged, Downing Street said JLR was 'responding to challenging global conditions'. It comes as JLR ceased production of most Jaguar models ahead of a complete relaunch expected next year. In November 2024, the carmaker unveiled a bold rebrand featuring a pink concept car and replacing its big cat logo with a capital J. JLR On VR Programme However, the latest figures released last week had revealed a drop in sales in the April to June quarter which had witnessed a temporary pause in shipments to the US amid high tariffs of 25 per cent on cars. 'JLR regularly offers eligible employees voluntary redundancy (VR) programmes,' a JLR spokesperson said. 'Through this limited UK VR programme for managers, JLR is aligning its leadership workforce for the business's current and future needs. We are grateful to the government for delivering at speed the new UK-US trade deal, which gives us the confidence to invest GBP 3.5 bn per annum to realise our strategy which is delivering,' the spokesperson said. (With Inputs From PTI)
India.com
27 minutes ago
- India.com
No Double Standards On Energy Trade: India On Latest EU Sanctions Package Against Russia
NEW DELHI: Hours after the European Union (EU) agreed upon an 18th round of sanctions on Russia over its invasion of Ukraine, India on Friday said that it does not subscribe to any unilateral sanction measures and that there should be no "double standards", especially when it comes to energy trade. "We have noted the latest sanctions announced by the European Union. India does not subscribe to any unilateral sanction measures. We are a responsible actor and remain fully committed to our legal obligations," Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said in response to media queries regarding the issue. "Government of India considers the provision of energy security a responsibility of paramount importance to meet the basic needs of its citizens. We would stress that there should be no double standards, especially when it comes to energy trade," he added. According to the EU, the 18th Russia sanctions package focuses on five building blocks: cutting Russia's energy revenues, hitting Russia's banking sector, further weakening its military-industrial complex, strengthening anti-circumvention measures, and holding Russia accountable for its crimes against Ukrainian children and cultural heritage. "With this package, the number of listed vessels in Russia's shadow fleet reaches a total of 444 vessels, and the number of individual listings exceeds 2,500. This package also includes new sanctions against Belarus," read the EU statement. On Thursday, Union Minister of Petroleum and Natural Gas Hardeep Singh Puri said that India has diversified its sources for buying oil in the global market, due to which the government is not 'unduly worried' over any US crackdown on Russia's oil exports. Speaking at the Urja Varta 2025, the minister said India currently buys oil from 40 nations, as compared to 27 countries in 2007, and the global market is well-supplied. "There is a lot of oil available in the market. Iran and Venezuela are currently under sanctions. But are they going to be under sanctions forever? Many countries, including Brazil, Canada and others, are ramping up output. I am not unduly worried about supplies as of now. We have diversified our sources," Puri said. The minister's statement came against the backdrop of US President Donald Trump announcing that secondary sanctions would be imposed on countries buying Russian oil. On July 15, Trump had threatened to impose serious trade restrictions on Russia unless a peace deal with Ukraine is reached within 50 days. Trump said US tariffs on Russian exports would be increased to 100 per cent, while also threatening to impose secondary sanctions on countries such as India and China that buy oil from Russia. Meanwhile, Moscow on Friday described the move as unlawful and emphasised that it will assess the latest package in order to minimise its impact. "So far, we continue to observe a fairly consistent anti-Russian stance from Europe. We have repeatedly stated that we view such unilateral restrictions as illegal and we oppose them," Russian state-run news agency TASS quoted Kremlin spokesperson Dmitry Peskov as saying. Peskov further emphasised that the Russian leadership will assess the latest package of European sanctions in order to minimise its impact. "Undoubtedly, the new package will need to be thoroughly analysed in order to minimise its impact," said Peskov. He further asserted that Russia has developed a degree of immunity to sanctions over the course of repeated waves of Western restrictions. "Over time, we have indeed developed a certain immunity to sanctions and have adapted to living under such conditions," he noted.
