Trump Warns Numerous Countries of Reciprocal Tariffs That Could Start August 1
Japan and South Korea face 25% tariffs.
President Donald Trump sent letters to the leaders of seven countries, alerting them to new reciprocal tariffs that could take effect on August 1.
These tariffs should have started on July 9, though. So, yeah, Trump is giving them another delay.
These countries face possible higher tariffs:
- Japan – 25%
- Kazakhstan – 27%
- Laos – 40%
- Malaysia – 25%
- Myanmar – 40%
- South Africa – 30%
- South Korea – 25%
Trump posted the letters on Truth Social. They all say the same thing except the country name and tariff number.
For example, his letter to Japanese Prime Minister Ishiba Shigeru stated:
Our relationship has been, unfortunately, far from Reciprocal. Starting on August 1, 2025, we will charge Japan a Tariff of only 25% on any and all japanese products sent into the United States, separate from Sectoral Tariffs. Goods transshipped to evade a higher Tariff will be subject to that higher Tariff. Please understand that the 25% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country.
Sectoral tariffs target specific industries, such as steel or agriculture.
Trump warned the leaders that if they choose to raise their tariffs, then the U.S. will raise its tariffs more.
Myanmar faces 40% tariffs. If Myanmar raises its tariffs, the U.S. will add that number “onto the 40% that we charge.”
Trade wars are dumb. I’m having a hard time keeping up with all of these tariffs.
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Comments
The only one I object to is South Africa it is far too low, it should be at least 100%.
Trade wars may be dumb but free trade has been strangled in many of these countries for years at our expense. In some countries, the govt feeds on US mystique as a status symbol for its citizens in order to profit off of us for no good reason. It’s time for that to end.
“Well, tariffs are taxes, and when you put a tax on a business, it’s always passed through as a cost. So, there will be higher prices,” Senator Rand Paul said, arguing, as he has in the past, that unfettered global trade is enormously beneficial. “The only trade that means anything is the individual who buys something. That’s the only real trade. And that by very definition, if it’s voluntary, is mutually beneficial, or the trade doesn’t occur.”
I expect Trump supporters to sell off most of their stocks before the tariffs kick in.
I haven’t changed my investing approach nor do I intend to. I might add that I have profited substantially since Trump’s inauguration, though to be fair I attribute that to my research and consistent principles. For example, I took a significant position in RGTI at $1.4 and sold at $20. I don’t consider that Trump had anything to do with that.
Sure, though the key point is ‘unfettered’ which is not the case at all our current global trade system. Most of us calling for imposing tariffs would gladly set US tariff and non tariff trade barriers aside IF other Nations would do likewise. It isn’t as of the US is imposing tariffs into an otherwise open global market.
The original ‘free traders’ were smugglers who didn’t want to pay excise taxes so they keep more profits when they sold to customers and capture more market share from their law abiding competition. Very much the same today with employers who hire illegal aliens. Same sorts of arguments made against rounding up illegal aliens and cracking down on employers who hire them; ‘oh, it will raise prices’. Ok and wages will rise for the US Citizens willing to do the jobs. The folks harmed would be the laptop and credentialed class worried they might have to pay a US Citizen more $ for lawn care, child care, cleaning services and other low skill jobs IOW the same economic class of folks in the top 15% who benefited from globalisation which eroded middle/lower class wages for three + decades creating an asset bubble whose gains accrued almost entirely to the top 15%.
“I expect Trump supporters to sell off most of their stocks before the tariffs kick in.”
As usual, you’re wrong.
Trade wars ain’t dumb. Refusing to respond to long-standing unfair trade practices by our economic competitors who use tariff and non tariff barriers such as import quotas or import bans against US exports which harms our economy, it’s companies and the US workforce ….that’s dumb. It’s like entering a boxing competition with one hand tied behind your back.
Hopefully the imposition of more/less reciprocal trade berries against these same Nations by the US will spark a change in their long standing protectionism and unfair trade practices against US exports and ultimately US workers. Tough to be a consumer of any product or service without a good paying job and for far too long the faux libertarian arguments about ‘free trade’ have ignored the impact of globalisation on US workers. By all means let’s get to actual free trade, where no Nation imposes artificial barriers to trade but the USA must upend the status quo of other Nations imposing barriers while our economy open to their exports at the cost of our domestic companies, domestic manufacturing and the good paying jobs that accompany them.
SA’s tariff is too low. Treble it as punishment for their racism and antisemitism.
What is dumb is allowing eleven trading practices to continue without abatement.
That IS dumb 🙄
Eleven = uneven! 😂
It’s not like they didn’t get warned it was going to happen!
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