President Donald Trump has stepped up his trade push, announcing that starting August 1, the US will raise tariffs across the board on goods from at least seven countries.
In a series of posts on his platform, Truth Social, Trump shared images of signed letters sent to the leaders of Japan, South Korea, Malaysia, Kazakhstan, South Africa, Laos, and Myanmar.
Each letter outlined new, higher tariff rates aimed at their countries’ exports to the US.
Under the revised plan, imports from Japan, South Korea, Malaysia, and Kazakhstan will face a 25% tariff.
South African goods will be taxed at 30%, and items from Laos and Myanmar will see the steepest increase, with a 40% duty.
These changes are expected to make goods from these countries more expensive in the US, potentially straining trade ties and reshaping global supply chains.
Trump’s tariff pause nears end
The new tariffs are part of a broader effort by the US to overhaul its trade relationships.
Back in April, President Trump introduced a 10% base tariff on most imports, with even steeper rates for certain countries.
But after a rough week on global markets, he hit pause temporarily lowering all tariffs to a flat 10% for 90 days to give negotiations a chance.
That pause is now set to end, and unless the US strikes individual trade deals with the affected countries, the higher tariffs will kick in.
In the letters Trump sent to foreign leaders, he argued that tougher measures are needed to fix the US’s long-standing trade deficits.
In 2024, the US ran a $68.5 billion goods trade gap with Japan and a $66 billion deficit with South Korea.
The administration claims these imbalances reflect unfair trade practices and a lack of give-and-take and says the new tariffs are meant to push for more balanced deals.
Moreover, Trump lashed out at the BRICS bloc and threatened that countries aligning with the “anti-American” grouping could face up to 10% additional tariffs.
Dow plunges 500 points
Donald Trump’s reimposition of tariffs spooked investors on Monday the Dow Jones Industrial Average dropped by 536 points, or 1.2%, while the S&P 500 declined by 1% and the Nasdaq Composite slipped by the same margin.
Shares of Toyota Motor and Honda Motor dropped by 4% after Trump’s announcements. Nvidia saw a slight decline, while Apple, Alphabet, and AMD each fell by more than 2%.
Tesla shares took a hit on Monday, falling 7% after CEO Elon Musk revealed plans to start a new political group called the “America Party.”
The news added to investor concerns, as some believe Musk’s increasing political involvement has been hurting Tesla’s image and turning off potential buyers.
It’s not the first time this year that his public moves outside the company have rattled the stock.
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