Trump Tariff Highlights: Indian team to soon visit Washington again; Brazil vows to respond with ‘reciprocity’ after 50% tariff

Indian stock markets remained mostly unchanged after US President Donald Trump announced new tariffs on several countries but left room for further trade talks. The BSE Sensex moved up and down slightly and was down just 0.01% at 83,431. The NSE index also showed a similar small drop, closing at 25,463.

The highest tariffs of 40% were levied on Myanmar and Laos. The second-highest tariffs of 36% were levied on Thailand and Cambodia, followed by 35% tariffs on Republic of Serbia and Bangladesh.

Trump has been sharing letters on his social media platform, Truth Social, since yesterday. These letters are meant to inform other countries about the new tariff rates the US will apply starting August 1. Before posting the letters, Trump said that any country supporting the “anti-American policies of BRICS” would face an extra 10% tariff. He also warned that there would be no exceptions to this rule.

Click here to read full country-wise list of Trump Tariffs

Indonesia has said that it still has room for tariff negotiation with the US. A top negotiator will be meeting US trade representatives in Washington soon, MKTNews reported citing an official.

In the coming weeks, traders will keep a close eye on what Federal Reserve officials say about the latest tariff news, a Bloomberg report said. Fed Chair Jerome Powell has already suggested that he doesn’t plan to lower interest rates this month. Because of this, traders want to see if the new tariffs will lead other Fed members to speak out against market expectations for a possible rate cut in September.

Agriculture has been a key part of many of the US’ trade talks with Asian countries. Ahead of the long holiday weekend, traders were hoping Trump would announce a trade deal with China, the world’s biggest buyer of farm goods. Instead, the US revealed new tariff rates on major grain buyers like Japan and South Korea. As a result, corn prices fell by up to 4.2% on Monday. Soybean prices dropped 3%, and wheat was down 2.7%, reported Bloomberg.

Trump has said that putting tariffs in place will help protect American companies from foreign competition and will also support local factories and create more jobs in the US. However, many economists believe that these tariffs will lead to higher prices for American consumers and hurt international trade. On Monday, the three major stock market indexes in the US went down, and Toyota’s shares traded in the US dropped by 4%.

Trump has said that the US is nearing a trade agreement with India. He mentioned that deals have already been made with the United Kingdom and China, and India could be next. For countries where a deal seems unlikely, he said the US is moving ahead by sending official letters explaining the tariffs they will face if they want to continue trading with America. These comments came as the Trump administration began sending out the first round of letters on Monday. The letters outlined the new tariffs the US plans to apply to goods coming in from several countries.

According to Capital Economics, ongoing uncertainty around US tariffs may cause the Bank of Japan (BOJ) to delay plans to raise interest rates, reported MKTNews. While the research group expects Japan and the US to eventually reach a deal that avoids the 25% tariffs, economist Marcel Thieliant says a quick agreement with little or no increase in tariffs would support a possible rate hike by the BOJ in October. Right now, inflation in Japan is higher than what the BOJ predicted in May, and the economy is showing strength. But if trade talks drag on or the US moves forward with steep tariffs, the BOJ may wait until next year to raise interest rates.

Economists at Morgan Stanley believe that US trade talks are moving toward a more aggressive approach, as per MKTNews. If the tariffs mentioned in Trump’s recent letters are put into effect, the average tariff rate on Asian countries could go up to 27%, according to Chetan Ahya and his team, MKTNews said. While Trump has suggested that a deal with India is getting closer, Morgan Stanley thinks most big Asian economies will likely make agreements before the August 1 deadline. However, Japan and South Korea might face difficulties. Japan still has unresolved issues related to car and farm product tariffs, while South Korea is pushing for relief on tariffs for cars and steel.

Japan Finance Minister has said that the country “will work on negotiations with US on tariffs”. He added that Japan will take “all possible measures to ease tariff impact on industries, including corporate financing.”

The US has placed 36% tariffs on Thailand, according to a Reuters report based on a letter from President Donald Trump. In response, Thailand’s Finance Minister Pichai Chunhavajira said he is willing to go to the US for trade discussions. He mentioned that the proposal on the table includes tariff cuts for 90% of goods the US imports.

He also said he is confident that Thailand will eventually receive fair tariff rates, similar to what other countries are getting. He added that Thailand will now focus more on strengthening its local economy and expanding its exports to other countries.

– Trump sent letters on Monday warning trading partners about higher tariffs, but gave them more time by moving the deadline to August 1. That’s when the new tariffs will start.

– The new rates are mostly similar to what was shared earlier: 25% tariffs on goods from Japan and South Korea, 30% on South Africa, and 36% on Thailand and Cambodia.

– Trump said these rates are final for now, but if a country comes back with a better offer and he agrees with it, he’s open to making changes. The letters were sent just two days before trade partners were supposed to respond to the proposed tariffs, known as “reciprocal levies.”

– Japan’s Prime Minister Shigeru Ishiba said he was very disappointed by the higher tariffs, but that Japan will try to reach a deal quickly.

– In the markets, US stocks dropped, with the S&P 500 falling by 0.8%. However, Asian markets held up fairly well, and the South Korean won and Japanese yen went up slightly. In contrast, South Africa’s currency, the rand, lost value.

Japanese Prime Minister Shigeru Ishiba told his cabinet that it was very disappointing that Trump had announced higher tariffs. He said Japan would try to reach a deal quickly but admitted that there are still some issues the two countries disagree on. He also said that Japan has not made quick or easy compromises during the talks so far and will keep standing up for its own interests.

The fact that Trump is still willing to talk about trade deals is helping Asian currencies stay stable, even with the new tariffs, a Bloomberg report said. The report further added that it’s important to remember that no matter what the final tariff rate is for each country, it won’t be zero because of the deals already in place. So, every Asian country will be affected in some way.

Trump has shown clear frustration with Japan in recent weeks. He and Japanese leader Ishiba couldn’t reach an agreement during last month’s G-7 Summit in Canada, which only added to the negative outlook. Just last week, Trump warned that Japan could face tariffs as high as 35%, or possibly more, because of the large trade gap between the two countries. One of the main issues causing tension is the auto industry. Trump’s proposed tariffs on cars and car parts have created serious concern for Japan’s key automobile sector.

Let’s break down what Trump said about the letters being sent to other countries. He described them as close to final offers, even though the August 1 deadline isn’t completely fixed. When asked if countries like South Korea and Japan should accept the offers, Trump said the US is open to fair negotiations. He pointed out that many countries have benefited from trade with the US for a long time, and now it’s time to bring more balance. From his point of view, the current trade situation is unfair, and the small changes being asked for now don’t make up for the losses the US has faced over the years.

When asked why the administration hadn’t secured 90 trade deals in 90 days as promised, Trump avoided giving a direct answer to the reporters on Monday. He said they had spoken to all countries involved. He added that while a few deals might still happen, most countries would simply be getting a letter about the new tariffs. As far as he was concerned, the process was finished.

“I told you, I told you. We’ll make some deals. But for the most part, we’re going to send a letter,” Trump said. “As far as I’m concerned, we’re done.”

When asked if the new August 1 deadline was final, US President Trump said it was mostly set but not “100% firm”. He said that if other countries reach out with a different proposal, the US would be willing to consider it. But for now, the current plan remains in place.

“If they call up and they say we’d like to do something a different way, we’re going to be open to that. But essentially that’s the way it is right now,” Trump said.

The European Union is not expected to get a letter from the United States about higher tariffs, according to EU sources who spoke to Reuters on Monday. The EU is also hoping to get exemptions from the basic 10% US tariff.

President Trump has started sending letters to several countries—from Japan to Myanmar—informing them that much higher tariffs will be applied to their exports to the US starting August 1.

Some EU sources said the bloc is close to reaching a deal with the Trump administration. This possible agreement could include small compromises, such as accepting the 10% base US tariff on products like aircraft parts, some medical devices, and certain alcoholic drinks.

Two other sources said the EU is also exploring a deal that would let European carmakers who build and ship vehicles from the US import more EU-made cars at a lower tariff—less than the current 25%.

The White House has released the full text of an executive order signed by Trump, officially moving the upcoming tariff deadline from Wednesday to August 1. According to the order, the delay was based on new information and advice from senior officials, as well as updates on ongoing talks with US trading partners. It states that keeping the suspension in place until 12:01 am EDT on August 1, 2025, is both necessary and appropriate.

“I have determined, based on additional information and recommendations from various senior officials, including information on the status of discussions with trading partners, that it is necessary and appropriate to extend the suspension … until 12:01 a.m. eastern daylight time on August 1, 2025,” the order says.

Back in April, Trump had announced that the higher tariff rates would be postponed until July 9. The new order, which was first mentioned by White House press secretary Karoline Leavitt earlier in the day, also confirms that a separate suspension of tariffs on China, issued on May 12, will stay in effect with no changes.

1. Bangladesh: 35%

2. Bosnia and Herzegovina: 30%

3. Cambodia: 36%

4. Indonesia: 32%

5. Japan: 25%

6. Kazakhstan: 25%

7. Lao People’s Democratic Republic: 40%

8. Malaysia: 25%

9. Myanmar: 40%

10. Republic of Serbia: 35%

11. Republic of Tunisia: 25%

12. South Africa: 30%

13. South Korea: 25%

14. Thailand: 36%

Brazil President Luiz Inacio Lula da Silva slammed US President Donald Trump on Monday, stating that his tariff threats towards BRIC countries ‘’irresponsible’’, especially when made through social media.

While addressing the reporters after the BRICS summit in Rio de Janeiro, Lula dismissed warnings about implementing fresh tariffs on the bloc, which the US leader blamed for ‘’anti-American policies,’’ as per Reuters.

US stock markets ended sharply in red on Monday as investors’ anxiety grew after President Donald Trump announced new tariffs on countries including Japan and South Korea, as per a report by Reuters. The losses later increased on the day after he extended the tariff list to include South Africa, Laos, Malaysia, Kazakhstan, and Laos.

US President Donald Trump sent seven additional tariff letters addressed to the heads of Bosnia, Tunisia, Herzegovina, which will now face a 30% tariff, Bangladesh, Thailand, Cambodia, and Serbia. The total number of countries notified through the letters is 14.

US President Donald Trump on Monday reaffirmed that the August 1 date for new US tariffs will remain in place. However, he indicated some room for flexibility. While speaking to reporters, Trump stated that the timeline is ”firm” but not set in stone. ”If they call up and they say we would like to do something a different way, we are going to be open to that”.

Trump posted more letters about new tariff rates on Truth Social on Monday — an hour after sharing similar missives for South Korea and Japan. The rates outlined in the letters were (in most cases) slightly different from those shared on April 2.

US President Donald Trump announced on Monday that Myanmar would face 40% tariffs from August 1.

Trump says US will impose 30% tariff on South Africa, 25% tariffs on Kazakhstan and Malaysia as well as 40% tariffs on Laos.