US President Donald Trump will sign an order delaying higher tariffs from July 9 to August 1, the White House confirmed. Press Secretary Karoline Leavitt told reporters Trump aims to use this extra three weeks to lock in trade deals, and warned that countries failing to do so face his " reciprocal tariff rate" kicking in come August.
According to AFP, the White House hopes the delay gives room for breakthroughs with dozens of economies, from the EU to Japan. In the meantime, Trump has already started sending out what he calls tariff letters.
Tariff letters to Japan and South Korea
On Monday, Trump published two letters on Truth Social addressed to Japan and South Korea. Both letters confirm a 25% tariff on their products entering the US from August 1. The message is blunt: "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 all sectoral tariffs. Goods transhipped to evade a higher tariff will be subject to that higher tariff."
Trump also warned both countries not to hit back. "If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge." Yet he hinted at flexibility, noting tariffs could fall if Tokyo and Seoul change tack.
Japanese Prime Minister Shigeru Ishiba responded cautiously, saying he "won't easily compromise" while negotiating with Washington.
Over the weekend, he confirmed the United States will slap a 25 percent tariff on Malaysia and Kazakhstan if no deal is signed by 1 August. Laos faces an even steeper 40 percent rate. South Africa, a key BRICS member, has been told to brace for a 30 percent tariff.
The message is clear: countries dragging their feet or leaning towards BRICS risk hefty new costs for shipping goods to the States. In his usual blunt style, Trump posted on Truth Social that these measures target nations whose trade relations with Washington are, in his words, “far from Reciprocal.”
A broader push against BRICS
Trump’s tariff campaign doesn’t stop with Asia. He also announced plans for a potential 10% duty on countries supporting "Anti-American BRICS policies", accusing them of undermining US interests after they criticised his tariff push during a summit.
Still, Reuters reported the administration is unlikely to apply those 10% tariffs immediately. Trump’s strategy, it seems, is to use the threat as leverage.
The Liberation Day tariffs and market jitters
On April 2—what Trump labelled "Liberation Day"—the administration announced sweeping 10% duties on almost all trading partners. Some, like EU members, were set for even higher rates. Facing market backlash, Trump paused them for 90 days to see if deals could be struck. That pause ends this week.
So far, only a few deals have emerged: a limited framework with the UK, a short truce with China and the outline of an agreement with Vietnam. Treasury Secretary Scott Bessent admitted progress has been slower than hoped, telling Fox News, "There's a lot of congestion going into the home stretch."
Bessent also told CNN, "If you want to speed things up, have at it. If you want to go back to the old rate, that's your choice."
Europe tries to keep pace
The European Union, for its part, signalled it’s making progress. On Sunday, Trump and European Commission President Ursula von der Leyen had what Brussels described as a productive conversation. German Chancellor Friedrich Merz also phoned Von der Leyen and leaders in France and Italy to coordinate.
"The situation is becoming urgent," warned Stefan Kornelius, Merz’s main spokesperson. Germany, he said, supports the EU Commission’s negotiating approach, recognising the complex nature of the dispute.
Market reactions
The looming tariffs have rattled financial markets. S&P 500 futures fell by 0.5% after the July 4 market closure. Asian equity indices slipped by 0.7%, while European markets mostly held steady. The dollar rose 0.5%, hitting a weekly high against major currencies. Meanwhile, the Australian and New Zealand dollars each fell about 1%, as investors worry about how tariffs could hurt their China-heavy trade.
“It’s happening”
Commerce Secretary Howard Lutnick pushed back on claims that moving the date is just another delay. "It's not a new deadline. We are saying, this is when it's happening. If you want to speed things up, have at it. If you want to go back to the old rate, that's your choice," he explained.
Trump summed it up himself, posting on Truth Social: "I am pleased to announce that the UNITED STATES TARIFF Letters, and/or Deals, with various Countries from around the World, will be delivered starting 12:00 P.M. (Eastern), Monday, July 7th."
In the coming weeks, whether these letters spark new deals—or ignite a fresh round of trade wars—remains to be seen. What’s clear is Trump’s message to trading partners: make a deal, or pay the price.
According to AFP, the White House hopes the delay gives room for breakthroughs with dozens of economies, from the EU to Japan. In the meantime, Trump has already started sending out what he calls tariff letters.
Tariff letters to Japan and South Korea
On Monday, Trump published two letters on Truth Social addressed to Japan and South Korea. Both letters confirm a 25% tariff on their products entering the US from August 1. The message is blunt: "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 all sectoral tariffs. Goods transhipped to evade a higher tariff will be subject to that higher tariff."
Trump also warned both countries not to hit back. "If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge." Yet he hinted at flexibility, noting tariffs could fall if Tokyo and Seoul change tack.
Japanese Prime Minister Shigeru Ishiba responded cautiously, saying he "won't easily compromise" while negotiating with Washington.
Over the weekend, he confirmed the United States will slap a 25 percent tariff on Malaysia and Kazakhstan if no deal is signed by 1 August. Laos faces an even steeper 40 percent rate. South Africa, a key BRICS member, has been told to brace for a 30 percent tariff.
The message is clear: countries dragging their feet or leaning towards BRICS risk hefty new costs for shipping goods to the States. In his usual blunt style, Trump posted on Truth Social that these measures target nations whose trade relations with Washington are, in his words, “far from Reciprocal.”
A broader push against BRICS
Trump’s tariff campaign doesn’t stop with Asia. He also announced plans for a potential 10% duty on countries supporting "Anti-American BRICS policies", accusing them of undermining US interests after they criticised his tariff push during a summit.
Still, Reuters reported the administration is unlikely to apply those 10% tariffs immediately. Trump’s strategy, it seems, is to use the threat as leverage.
The Liberation Day tariffs and market jitters
On April 2—what Trump labelled "Liberation Day"—the administration announced sweeping 10% duties on almost all trading partners. Some, like EU members, were set for even higher rates. Facing market backlash, Trump paused them for 90 days to see if deals could be struck. That pause ends this week.
So far, only a few deals have emerged: a limited framework with the UK, a short truce with China and the outline of an agreement with Vietnam. Treasury Secretary Scott Bessent admitted progress has been slower than hoped, telling Fox News, "There's a lot of congestion going into the home stretch."
Bessent also told CNN, "If you want to speed things up, have at it. If you want to go back to the old rate, that's your choice."
Europe tries to keep pace
The European Union, for its part, signalled it’s making progress. On Sunday, Trump and European Commission President Ursula von der Leyen had what Brussels described as a productive conversation. German Chancellor Friedrich Merz also phoned Von der Leyen and leaders in France and Italy to coordinate.
"The situation is becoming urgent," warned Stefan Kornelius, Merz’s main spokesperson. Germany, he said, supports the EU Commission’s negotiating approach, recognising the complex nature of the dispute.
Market reactions
The looming tariffs have rattled financial markets. S&P 500 futures fell by 0.5% after the July 4 market closure. Asian equity indices slipped by 0.7%, while European markets mostly held steady. The dollar rose 0.5%, hitting a weekly high against major currencies. Meanwhile, the Australian and New Zealand dollars each fell about 1%, as investors worry about how tariffs could hurt their China-heavy trade.
“It’s happening”
Commerce Secretary Howard Lutnick pushed back on claims that moving the date is just another delay. "It's not a new deadline. We are saying, this is when it's happening. If you want to speed things up, have at it. If you want to go back to the old rate, that's your choice," he explained.
Trump summed it up himself, posting on Truth Social: "I am pleased to announce that the UNITED STATES TARIFF Letters, and/or Deals, with various Countries from around the World, will be delivered starting 12:00 P.M. (Eastern), Monday, July 7th."
In the coming weeks, whether these letters spark new deals—or ignite a fresh round of trade wars—remains to be seen. What’s clear is Trump’s message to trading partners: make a deal, or pay the price.
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