President Donald Trump has postponed a planned tariff increase on select imports, while formally notifying 14 countries including Japan, South Korea, Thailand, and Bangladesh of new import tariffs set to begin on August 1.
The move comes after the expiry of a 90-day suspension period on earlier tariff proposals, initially slated to end this week. The new deadline, though firm, remains flexible, as Trump indicated willingness to consider alternative proposals from foreign governments.
“This gives everyone an opportunity to come to the table,” Trump told reporters, adding, “But we won’t wait forever.”
Rather than signalling a retreat, the delay is viewed as a strategic pause to maintain negotiating pressure. In addition to announcing the extension, Trump disclosed letters sent to leaders of 14 nations, outlining tariff rates that could reach up to 40%.
Specific measures include:
- 40% tariffs on imports from Myanmar and Laos
- 36% on Cambodia and Thailand
- 35% on Serbia and Bangladesh
- 32% on Indonesia
- 30% on South Africa
- 25% on Malaysia and Tunisia
The letters mention that tariffs might still be adjusted “upward or downward,” depending on the outcome of bilateral talks.
While the administration frames the tariffs as necessary to protect US industries and correct “unfair” trade practices, economists caution these measures risk escalating trade tensions globally.
“The delay was anticipated,” noted Adam Ahmad Samdin of Oxford Economics, highlighting that comprehensive trade deals often take considerable time.
The market response was cautious: major US indexes fell, and Toyota’s shares listed in the US dropped by 4%. Japan, which exported over $148 billion to the US last year, remains under particular scrutiny. Japanese Prime Minister Shigeru Ishiba called the move “deeply regrettable” and stressed Tokyo’s commitment to a fair agreement.
South Korea shared similar concerns but hopes to intensify talks during the extension. Thailand expressed optimism about reaching a compromise.
Investment strategist Vasu Menon suggested the tariffs are likely a negotiation tactic rather than a settled policy. “Trump has used tariffs as leverage before; this feels similar,” he observed.
White House press secretary Karoline Leavitt defended the approach, claiming it had spurred engagement: “His phone rings off the hook from world leaders who want to make deals,” she said, hinting at more letters to come.
US Treasury Secretary Scott Bessent echoed this sentiment, saying the administration had received “a lot of new offers,” forecasting a busy period ahead.
Although partial deals have been struck with the UK, Vietnam, and China, key trade issues remain unresolved, and in many cases, tariffs are still higher than before Trump’s return to office.
Negotiations with India appear close to concluding, while talks with the European Union continue quietly, with no formal tariff letter issued yet. An EU spokesperson confirmed a recent “good exchange” between Trump and Commission President Ursula von der Leyen.
Trump first unveiled the tariff measures in April, citing national security and the need for “reciprocity.” Although the harshest measures were initially paused — including a planned 25% duty on Japanese and South Korean imports — Washington’s stance remains unpredictable, as seen in Trump’s recent warning to Japan of possible 35% tariffs if no deal was reached.
