President Donald Trump has changed tact on his “Liberation Day” tariffs on US imports, just as the 90-day postponement was set to expire on July 9th. Rather than implementing the tariffs, Trump has informed 14 nations of new duties scheduled to take effect on August 1st.
The tariffs, which do not start immediately in hope of negotiating improved trade deals, will target countries including Japan with rates ranging from 25% to 40%.
Affected countries include Japan (25%), South Korea (25%), Thailand (36%), Malaysia (25%), Bangladesh (35%), Bosnia (30%), Cambodia (36%), Indonesia (32%), Kazakhstan (25%), Laos (40%), Myanmar (40%), Serbia (35%), South Africa (30%), and Tunisia (25%).
In his remarks on the tariffs, Trump stated that the August 1st deadline is “firm, but not 100% firm,” leaving the door open for changes if negotiations with any affected nations are revived.
The President also made it clear that the tariffs could be adjusted – either increased or decreased – depending on the progress of trade relations with each country.
The United Kingdom, having negotiated a trade agreement with the US in May, is not impacted by the new tariffs, and the European Union has avoided the proposed 20% “Liberation Day” duty while trade negotiations with the US continue.
Undoubtedly, there will be more trade talks underway and further adjustments to US trade policy in the next few weeks. The team at Global Freight Services will be monitoring developments closely.