Trump announces new tariffs of up to 40% on a growing number of countries | CNN Business
In a major move shaking up global trade, former President Donald Trump has announced a new wave of tariffs—some as high as 40%—on goods from 14 countries, starting August 1, 2025.
On Monday, Trump sent formal letters to the leaders of nations including Japan, South Korea, Malaysia, South Africa, and Bangladesh, warning them about upcoming tariffs unless they strike fairer trade deals with the U.S. He explained these new tariffs are aimed at addressing America’s trade deficit—where the U.S. buys more from these countries than it sells to them.
To soften the blow, Trump signed an order delaying the start of the tariffs from July 9 to August 1, giving countries more time to negotiate. The only exception? China—which still faces the original July 9 deadline.
Which Countries Are Affected?
Here’s a quick look at who’s on the list:
- Japan & South Korea: 25% tariff
- Malaysia, Kazakhstan, Laos, South Africa, Myanmar: up to 40%
- Bosnia, Indonesia, Bangladesh, Serbia, Cambodia, Thailand, Tunisia: various rates up to 36%
These 14 nations collectively shipped $465 billion worth of goods to the U.S. last year, with Japan and South Korea alone accounting for 60% of that total.
What Products Could Be Affected?
Higher tariffs could make everyday items more expensive for Americans. Key imports from these countries include:
- Cars & auto parts (Japan, South Korea)
- Semiconductors (Malaysia)
- Pharmaceuticals & machinery
- Platinum (South Africa)
- Clothing & accessories (Bangladesh, Cambodia, Indonesia)
For example, Malaysia was the U.S.’s second-largest source of semiconductors last year, with $18 billion in shipments. South Africa provided half of America’s imported platinum.
Could It Get Worse?
Yes. Trump warned that if any of these countries hit back with their own tariffs on American goods, he’s prepared to increase rates even further. He emphasized that these new tariffs would not be stacked on top of existing sector-specific ones (like auto tariffs), but could be adjusted “upward or downward” depending on how each country responds.
In his letters, Trump encouraged foreign manufacturers to move their operations to the U.S. to avoid penalties.
What About the European Union?
Despite past threats, the EU didn’t receive a letter—at least not yet. European officials say they’re hoping to reach a mutually beneficial agreement with the U.S. before the August 1 deadline.
Market Reaction
Wall Street didn’t take the news well. After Trump’s announcement:
- The S&P 500 fell 79%
- The Dow dropped 422 points (0.94%)
- The Nasdaq slid 92%
Auto stocks took a big hit:
- Nissan fell over 7%
- Toyota dropped 4%
- Honda declined 9%
These drops reflect investor concern that car imports from Japan and South Korea could be hit even harder if trade tensions escalate.
Final Word
Trump closed his letters by saying:
“These tariffs may be modified, upward or downward, depending on our relationship with your country. You will never be disappointed with The United States of America.”
With only a few weeks until the new tariffs take effect, the pressure is now on America’s trading partners to strike new deals—or face higher costs when selling goods to the U.S.
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