President Donald Trump escalated his global trade offensive on Monday, announcing sweeping tariff increases on imports from 14 countries, including key allies Japan and South Korea, and regional trade partner South Africa, with rates reaching as high as 40% on some nations.
The tariffs, set to take effect on August 1, are part of a broader strategy aimed at forcing new trade negotiations under what Trump has called “reciprocal trade terms.”
In letters sent to the affected countries, Trump warned that any retaliatory tariffs would be met with matching increases from the United States. “If, for any reason, you decide to raise your tariffs, then whatever the number you choose to raise them by will be added on to the 25% that we charge,” he wrote in letters to Japan and South Korea, posted on his Truth Social platform.
The newly announced tariffs include a 25% levy on goods from Japan, South Korea, Tunisia, Malaysia, and Kazakhstan. Rates jump to 30% for South Africa and Bosnia and Herzegovina, 32% for Indonesia, 35% for Serbia and Bangladesh, 36% for Cambodia and Thailand, and 40% for Laos and Myanmar. Trump added that negotiations with India were nearing completion.
Wall Street reacted sharply to the news, with the S&P 500 Index tumbling, while Asian markets appeared more stable. The tariffs come amid rising global concern over US trade policies, which have already prompted diplomatic and economic uncertainty since Trump reignited a trade war in April.
Japanese Prime Minister Shigeru Ishiba said that talks were underway with the US and expressed hope that a deal could be struck before the August deadline. “Depending on Japan’s response, the content of the letter could be revised,” Ishiba said during a cabinet briefing.
South Korea, another major US trade partner, said it planned to intensify its trade talks, emphasising that any new deal must include tariff exemptions for automobiles and steel.
South African President Cyril Ramaphosa criticised the 30% tariff as unjustified and based on flawed data. “This is not an accurate representation of available trade data,” Ramaphosa said, noting that 77% of US goods currently enter South Africa duty-free. “More than half of the goods we import from the US are untaxed, and our average tariff on the rest is just 7.6%.”
Trump defended the move in a letter to Ramaphosa, stating that the US–South Africa trade relationship “has been, unfortunately, far from reciprocal.” He threatened further increases if South Africa retaliated and urged the country to remove “tariff and non-tariff barriers” for any chance at renegotiation.
Bangladesh, which heavily relies on the US market for its ready-made garments industry, was also hit hard. Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association, called the tariffs “absolutely shocking,” warning they could devastate a sector that employs over four million people.
Officials from Indonesia, Malaysia, Thailand, and Cambodia echoed similar concerns but said they remained open to further discussions. “Constructive engagement and dialogue remain the best path forward,” said Malaysia’s trade ministry.
Despite the sweeping measures, Trump signalled a willingness to renegotiate, saying the August 1 deadline is “firm, but not 100% firm,” leaving room for last-minute agreements. However, former US trade negotiator Wendy Cutler said time was running out. “While the news is disappointing, it does not mean the game is over,” she said.
The latest trade salvo marks a new chapter in Trump’s economic nationalism, as he attempts to realign global trade balances in favour of American industries, drawing both domestic support and international backlash.
Faridah Abdulkadiri
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