U.S. Announces New Tariffs of Up to 40% on a Growing Number of Countries

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White House press secretary Karoline Leavitt holds President Donald Trump's tariffs letter.

U.S. President Donald Trump escalated pressure on America’s trading partners by sending letters to the leaders of fourteen countries, informing them of new reciprocal tariff rates set to take effect on 1 August 2025. These tariffs range from 25% to as high as 40%, depending on the country.

Simultaneously, President Trump signed an executive order extending the deadline for the implementation of these reciprocal tariffs—except for China—from the originally planned 9 July to 1 August 2025. This extension offers some breathing room for negotiations, although the tariffs are expected to come into force imminently.

The letters specify tariff rates that in some cases are higher or lower than those announced in April. When questioned about the firmness of the new deadline, President Trump described it as “firm, but not 100% firm,” leaving room for potential last-minute negotiations.

Japan’s Prime Minister Shigeru Ishiba and South Korea’s President Lee Jae-myung were among the first recipients of the letters, each facing a 25% tariff. Both nations expressed intentions to continue talks with the U.S., with Japan actively pursuing a bilateral trade agreement.

Other countries notified include Malaysia, Kazakhstan, South Africa, Myanmar, Laos, Tunisia, Bosnia and Herzegovina (set to face a 30% tariff), Indonesia, Bangladesh, Serbia, Cambodia, and Thailand. Tariff rates for these countries vary, with Laos and Myanmar facing the highest at 40%.

President Trump’s letters cite the significant trade deficits the U.S. runs with these countries—where American imports exceed exports—as justification for the tariffs. He also criticised policies he views as obstructing U.S. goods from competing fairly abroad and encouraged foreign manufacturers to produce goods in the United States to avoid tariffs.

The tariffs come after a pause on reciprocal tariffs that began in April 2025. Since then, affected countries have faced a minimum 10% tariff, but the new rates represent a substantial increase.

In all letters, President Trump warned that any retaliatory tariffs imposed by these countries would prompt further tariff hikes from the U.S. He clarified that these reciprocal tariffs are separate from existing sector-specific tariffs, such as the 25% tariff on automobiles, and will not be stacked upon them.

Despite ongoing trade tensions with the European Union, no letters have been sent to the bloc, which remains hopeful for an agreement before the extended deadline.

Reactions among the notified countries have been mixed but generally inclined towards continued negotiations. Japan expressed regret over the increased tariffs but remains committed to reaching a mutually beneficial deal. South Korea signalled readiness to monitor developments and respond decisively if market disruptions occur. Thailand and Malaysia also voiced confidence in negotiating more favourable terms.

South African President Cyril Ramaphosa criticised the tariff rate imposed on his country as based on “inaccurate representation” of trade data but affirmed ongoing diplomatic efforts and urged local businesses to diversify.

Collectively, the fourteen countries notified accounted for $465 billion in U.S. imports last year, with Japan and South Korea alone representing 60% of that trade volume.



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