Trump Announces Tariffs of Up to 40% on Multiple Nations, Extends Deadline for Trade Deals

WASHINGTON, D.C. — President Donald Trump escalated his protectionist trade agenda on Monday, formally notifying 14 countries of new tariffs, some as high as 40%, as part of his "reciprocal tariff" initiative. At the same time, the White House confirmed an executive order to extend the tariff implementation deadline to August 1, giving nations additional time to negotiate bilateral deals.

The move marks the most aggressive phase of Trump’s trade strategy since April, when steep new tariffs were first unveiled. Since then, countries have faced a minimum 10% import tariff on nearly all goods shipped to the United States. That rate is now poised to increase significantly for countries that fail to strike agreements.

Japan, South Korea Among First Targets

Trump shared letters via Truth Social addressed to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung, informing them of 25% tariffs set to begin August 1. Both countries rank among America’s top 10 trading partners and account for the bulk of the $351 billion in goods targeted on Monday.

Additional letters followed, directed at leaders in Malaysia, Kazakhstan, South Africa, Myanmar, Laos, Tunisia, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia, and Thailand. The announced tariffs for these countries ranged from 25% to 40%.

White House Press Secretary Karoline Leavitt said more letters may follow, bringing the total number of impacted countries above 20. She added that Trump is open to further negotiations but emphasized that tariffs would rise again if foreign governments retaliated.

“President Trump’s phone rings off the hook with world leaders seeking trade deals,” Leavitt told reporters. “But only three agreements have been reached so far.”

Economic Impact and Market Reaction

The ripple effect of Trump’s tariff letters was immediate on Wall Street. The Dow Jones Industrial Average dropped 422 points (-0.94%), while the S&P 500 fell 0.79% and the Nasdaq declined 0.92% — the worst single-day performance in nearly a month.

Auto stocks with heavy exposure to Japan and South Korea led the downturn. Shares of Nissan, Toyota, and Honda plunged by 7.16%, 4%, and 3.86% respectively, amid fears that vehicle tariffs could follow if relations worsen.

Despite Trump’s assurances that country-specific tariffs will not stack on top of existing sector-specific ones (such as the current 25% auto tariff), investors remain wary. Analysts caution that Trump’s flexibility to adjust tariffs "up or down" leaves future policy uncertain.

Strategic Targets and Trade Deficit Concerns

In the letters, Trump cited America’s trade deficits as a key rationale for the new tariffs, accusing these countries of restricting U.S. exports while benefiting disproportionately from American consumption.

For example:

• South Africa, now facing a 30% tariff, is the top U.S. supplier of platinum.

• Malaysia, facing 24%, was the second-largest source of semiconductors imported to the U.S. in 2024, totaling $18 billion.

The White House said these tariffs are designed to incentivize foreign manufacturers to relocate operations to the U.S., which would exempt them from penalties altogether.

Political Calculus Ahead of 2026 Elections

With midterm elections on the horizon, analysts view the tariff campaign as a cornerstone of Trump’s broader push to revive American manufacturing and bolster his economic platform.

“This may be part economic strategy, part political messaging,” said Ulrike Hoffmann-Burchardi, head of equities at UBS Global Wealth Management. “By positioning the U.S. as tough but fair, Trump is appealing to voters who feel left behind by globalization.”

As negotiations continue, investors and international leaders alike will be watching closely. The next key date is August 1, when the tariff extension expires — unless, of course, Trump decides to shift the goalposts again.