Trump's Trade War Escalates: 14 Countries Face New Tariff Threats

TLDR

Table of Contents

Trump sent letters to 14 countries threatening 25% to 40% tariffs on imports starting August 1
Japan and South Korea face 25% tariffs under the new threats, with other nations including Malaysia, South Africa, and Indonesia also targeted
China warned against restarting trade tensions and threatened to hit back at countries that exclude China from supply chains
The White House delayed implementation of the tariffs from July 9 to August 1 through an executive order
Stock markets fell Monday as investors worry about returning trade tensions, with futures remaining muted Tuesday

President Trump has ramped up trade pressure by threatening new tariffs on 14 countries while delaying the return of sweeping trade levies originally planned for this week. The moves come as global markets brace for renewed trade tensions.

Trump posted letters on Monday warning leaders of Japan, South Korea, Malaysia, South Africa, Thailand, and other nations about incoming tariffs. The threatened rates range from 25% to 40% on imports from these countries. Japan and South Korea received warnings about 25% tariffs on their exports to the United States.

Trump announces tariffs on Japan and South Korea. 25% each.
This is the reward they get for being loyal vassals. pic.twitter.com/udpdduQZHi
— ADAM (@AdameMedia) July 7, 2025

The White House said Trump signed an executive order Monday delaying the implementation of these tariffs until August 1. This pushes back the original July 9 deadline for what Trump called “Liberation Day” tariff rates. The delay gives countries more time to negotiate trade agreements with the United States.

China issued a strong warning Tuesday against restarting trade tensions with the US. The country threatened to retaliate against nations that make deals with America to exclude China from supply chains. Chinese officials said dialogue and cooperation remain the only correct path forward.

Current Trade Deals

The US has reached limited trade agreements since Trump’s April tariff pause. Britain and Vietnam have secured deals with the United States. China agreed to a framework for future negotiations, though many details remain unclear.

Vietnam will face a 20% tariff under its new agreement, down from the 46% Trump threatened in April. However, Vietnamese goods will face a 40% tariff on any transshipping, which refers to goods that originate from other countries like China.

The European Union is reportedly racing to finalize a deal this week. The bloc has signaled willingness to accept a 10% universal tariff on many exports while seeking exemptions for certain sectors.

Canada has scrapped its digital services tax that would have affected large US technology companies. The White House said trade talks between the two countries have resumed with a mid-July deadline in focus.

Market Response

Stock markets fell Monday as Trump began posting the tariff letters. The Dow Jones Industrial Average dropped 0.94% while the Nasdaq declined 0.92%. Futures remained muted Tuesday morning as investors processed the latest developments.

US stock futures showed mixed results Tuesday with Dow futures hovering near flat. S&P 500 futures edged 0.1% higher while Nasdaq 100 contracts gained 0.2%. The moves reflect ongoing uncertainty about trade policy direction.

South Korea responded quickly to Trump’s tariff letter by promising to accelerate trade negotiations with the US. The country said it considered the August 1 date an extension of a grace period for reaching an agreement.

The White House indicated Trump may send additional letters in the coming days and weeks. This suggests the current round of tariff threats may expand to include more countries or sectors.

Trump’s latest actions highlight the unpredictable nature of his trade policy approach. The moves suggest a return to the steep tariff levels announced in April while theoretically allowing more time for negotiation.

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