The White House is now operating on letterhead. On Monday, President Trump issued formal trade warnings to 14 countries, each receiving a tailored notice outlining new tariff rates on exports to the United States. The letters, posted publicly on Truth Social, detailed duties ranging from 25% to 40%, with enforcement set to begin August 1. The move follows the administration’s earlier “Liberation Day” tariff framework from April, which was paused for 90 days to allow negotiations. That pause has now been extended, but the tone has shifted—these letters are not invitations. They’re ultimatums.
Japan and South Korea were assigned 25% tariffs. Malaysia and Kazakhstan received the same rate. South Africa and Bosnia and Herzegovina were hit with 30%. Indonesia faces 32%, while Bangladesh and Serbia are set at 35%. Cambodia and Thailand were notified of 36% duties. Laos and Myanmar top the list at 40%. Each letter included a clause warning that any retaliatory tariffs would be matched and added to the existing rate. Trump wrote, “Whatever the number you choose to raise them by will be added onto the 25% we charge.”
The letters also emphasized that these tariffs are separate from sectoral duties already in place, such as the 50% rate on steel and aluminum. Goods rerouted through third countries to avoid penalties will be taxed at the higher rate. Trump encouraged foreign manufacturers to relocate production to the U.S., stating that “there will be no tariff” if goods are made domestically.
The administration claims the new rates are designed to rebalance trade relationships and reduce the U.S. goods deficit, which remains significant. Japan’s deficit with the U.S. stood at $68.5 billion in 2024, while South Korea’s reached $66 billion. Other countries on the list have smaller gaps, but the White House argues that non-reciprocal trade practices justify the blanket approach.
The letters were signed and released ahead of a new round of announcements expected Wednesday morning, with Trump stating, “We will be releasing a minimum of 7 Countries having to do with trade, tomorrow morning, with an additional number of Countries being released in the afternoon.” The August 1 deadline is firm. “There has been no change to this date, and there will be no change,” Trump posted.
Markets responded with caution. The Dow fell 422 points, the S&P 500 dropped 0.79%, and the Nasdaq closed down 0.92%. Japanese automakers saw sharper declines, with Toyota and Honda sliding over 4%.
The administration has reached limited trade arrangements with the UK, Vietnam, and China. Other countries are still negotiating. Thailand’s finance ministry submitted a proposal to lower its rate. South Africa’s president called the 30% figure “an inaccurate representation” of trade data. Japan convened a cabinet task force, and South Korea warned of “bold action” if market volatility increases.
The letters mark a shift from negotiation to enforcement. Whether more deals will be struck before August remains uncertain. But the message is clear: the U.S. is done waiting.
Sources
https://www.ainvest.com/news/trump-announces-tariffs-countries-rates-range-25-40-2507/
https://www.politico.com/news/2025/07/07/trump-threatens-japan-south-korea-new-tariffs-00441302
https://www.cnbc.com/2025/07/07/trump-tariffs-trade-letters-japan.html