US President Donald Trump escalated his global trade offensive on July 7, sending formal letters to 14 nations warning of steep new tariffs unless trade agreements are renegotiated by August 1. The targeted countries range from key allies like Japan and South Korea to smaller economies such as Tunisia and Laos, with tariff rates spanning from 25% to as high as 40%.
While Trump stressed that the US remains open to negotiations, the letters made clear that failure to reach “reciprocal” trade deals would trigger the new levies. Among the highest tariffs are 40% on Laos and Myanmar, followed by 36% on Thailand and Cambodia, 35% on Bangladesh and Serbia, and 32% on Indonesia. South Africa and Bosnia and Herzegovina face 30%, while Malaysia, Tunisia, Japan, South Korea, and Kazakhstan are in the 25% bracket.
The White House confirmed that the original deadline for implementing these tariffs has been extended to August 1 through an executive order. Trump called the new deadline “firm, but not 100% firm,” suggesting flexibility if countries choose to resume talks.
Trump is no stranger to enacting policies that spark uproar, and the April 2 tariff announcement was no exception. Calling it "Liberation Day," Trump unveiled a new round of reciprocal tariffs on global trading partners—only for the US stock market to plunge hours later.
Financial experts have been warning about the consequences of the escalating trade war on the national economy, potentially pushing the US toward a recession. But what exactly is a tariff, and why does Trump favor them so much?
Click through the following gallery to find out how the new tariffs may impact you.