US President Donald Trump on Monday imposed a new set of tariffs on 14 nations, the highest duty of 40 per cent being imposed on Myanmar and the Lao People’s Democratic Republic. The new trade policy will become effective from August 1.
The tariffs were explained in formal letters addressed to the leaders of the nations and posted by Trump on his Truth Social site. The letters are a component of what he called “a wave of letters” that he said were being released to America’s trading partners.
Trump Warns Against Retaliation
In each letter, Trump warned against retaliatory measures, writing, “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 tariffs that we charge.”
He also stated that the tariffs were “needed to reverse the decades of tariff and non-tariff measures and trade barriers” that had led to “unprecedented trade deficits with the United States.”
“The deficit is a major threat to our economy and indeed our national security,” the US President added.
Tariff Issued by Trump Shakes-Up Sparks Global Uncertainty
As Trump’s crusade to reform US trade policy continues to reveal itself, companies, markets, and policymakers are confronted with increasing uncertainty. Constant changes to tariffs are rendering it hard to schedule production. Inventory. Hiring. And inflation.
Japan and South Korea were the initial two nations included in Trump’s most recent tariff statement. Both were slapped with a 25 percent tariff under the new trade policy.
White House press secretary Karoline Leavitt, when asked why President Donald Trump had chosen to target Japan and South Korea first, said it was “the president’s prerogative.”
“Those are the countries he chose,” she added.
Trade Agreements in Progress
She further added that the Trump administration is “close” to finalising agreements with several other trading partners and that Trump “wants to ensure these are the best deals possible.”
Full List of Affected Countries and Tariff Rates
- Bangladesh: 35%
- Bosnia and Herzegovina: 30%
- Cambodia: 36%
- Indonesia: 32%
- Japan: 25%
- Kazakhstan: 25%
- Lao People’s Democratic Republic: 40%
- Malaysia: 25%
- Myanmar: 40%
- Republic of Serbia: 35%
- Republic of Tunisia: 25%
- South Africa: 30%
- South Korea: 25%
- Thailand: 36%