Extension of Trump Tariff Adjustments Announced: Effective in Early August
Tariff Letter
Ahead of the tariff 90-day pause deadline, Trump officially announced his tariff on the neighboring countries, including Japan, South Korea, Cambodia, Thailand, etc., with the effective date of August 01, 2025.
The universal tariff of 10% will come to an end, and all countries will face tariffs according to the image below, and if any of those who reciprocate do so, then they will face twice the percentage of the original tariff rate.
For instance, both Japan and South Korea will be faced with 25% tariffs, so if they raise the tariff, a 25% levy will be added on top of it. This comes with what Trump has repeatedly claimed are “UNFAIR” trade deficits.
Despite such an announcement, this could be seen in a very positive way, as this tariff extension will give more breathing time for the countries to negotiate further. But the worst part is whether the countries can negotiate this to settle on a reasonable countermeasure or not.
Opinion
One thing to keep in mind is that Trump is trying to leverage his deal to change the global trade, yet BRICs members also try to devalue the Dollar currency, albeit Trump threatened with a 10% tariff yesterday.
So now comes the tricky part. If every country united as one, not only from BRICs but also from ASIA, the weight of negotiation will be heavier—a.k.a., the US will likely lower its leverage.
Other Information:
Trump hopes to secure the ceasefire deal with Israel about the recent conflict with Iran and Israel’s war in Gaza.
With Trump’s tariff letter and possible ceasefire deal coming into place, the gold price has somewhat eased in the early Asian session. Even Samer Hasn, senior market analyst at XS.com, also stated that “There seems to be renewed optimism over potential trade deals that could de-escalate the global trade war.”
