US President Donald Trump on Monday reignited his trade war campaign by issuing a new round of tariff threats aimed at 14 nations, warning of punitive duties as high as 40 percent unless trade deals are struck before an August 1 deadline. The announcement marks the first wave of formal notices in what Trump has described as a broader strategy to rebalance global trade in America’s favour.
Among the harshest penalties: Laos and Myanmar are each set to face 40 percent tariffs, followed closely by Cambodia and Thailand at 36 percent. Bangladesh and Serbia are in line for 35 percent duties, while other countries, including Indonesia, South Africa, and several Asian and Eastern European economies, will also face steep hikes ranging from 25 to 32 percent.
Despite the aggressive move, Trump signaled some room for negotiation, noting the August 1 deadline was “not 100 percent firm.” “Maybe adjust a little bit, depending… We’re not going to be unfair,” Trump said, indicating flexibility for nations willing to make fresh concessions.
List of targeted countries and proposed tariffs:
- Laos – 40%
- Myanmar – 40%
- Thailand – 36%
- Cambodia – 36%
- Bangladesh – 35%
- Serbia – 35%
- Indonesia – 32%
- South Africa – 30%
- Bosnia and Herzegovina – 30%
- Malaysia – 25%
- Tunisia – 25%
- Japan – 25%
- South Korea – 25%
- Kazakhstan – 25%
Trump confirmed that the US has already secured trade agreements with the United Kingdom and Vietnam, and is “close” to finalising a deal with India. “Others we met with, we don’t think we’re going to be able to make a deal. So we just send them a letter,” Trump said during a press conference.
The president has made it clear that any retaliatory tariffs by targeted nations will result in equal or higher duties imposed by the US “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 percent that we charge,” he warned in letters posted to his Truth Social platform.
No overlap with existing duties
Trump also clarified that the newly announced tariffs would not be stacked on top of existing sector-specific tariffs. For example, Japanese automobile tariffs, already at 25 percent, will not double up to 50 percent despite the new reciprocal rate, avoiding a compounding effect seen in previous rounds of tariffs. The new rates reflect subtle shifts from earlier announcements. Japan’s new rate is one percentage point higher than the 24 percent floated in April. South Korea’s rate remains unchanged from Trump’s initial announcement. The global trade community is now on high alert as nations scramble to avoid Trump’s economic hammer. An executive order signed Monday extended the initial negotiation window from July 9 to August 1, offering one last opportunity for affected countries to broker last-minute deals and avoid the impending tariff shock.
