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Trump's Trade Glove: New Tariffs Announced, India Deal!
US President Donald Trump has unveiled new reciprocal tariffs set to hit 14 nations from August 1st, including key Asian economies like Japan and South Korea. However, in a surprising turn, he also indicated that the US is "close" to finalising a major trade deal with India, while confirming agreements with the UK and China.
Washington D.C. – 8 July 2025 – In a significant move shaking up global trade, US President Donald Trump announced on Monday (July 7, 2025) evening (local time) that new reciprocal tariffs will be imposed on 14 nations, effective August 1st. This declaration came as the administration shared formal letters with the affected countries via social media, detailing the new import duties.
Speaking to reporters at the White House, where he hosted Israeli Prime Minister Benjamin Netanyahu, Mr. Trump confirmed that trade agreements have been successfully concluded with the United Kingdom and China. Critically for the Indian economy, he revealed that the US is "close to making a deal with India," a statement that offers a glimmer of hope amidst the broader tariff announcements.
"We've spoken to everybody. ...it's all done," Mr. Trump stated, outlining his administration's approach. "We'll make some deals, but for the most part, we're going to send a letter. We're going to say, welcome to the United States if you'd like to participate in the greatest, most successful country ever."
The newly announced tariffs target a diverse group of nations, with rates varying significantly. Myanmar and Laos face the steepest duties at 40%, while Thailand and Cambodia will see a 36% tariff. Bangladesh and Serbia are slated for a 35% tariff, Indonesia 32%, and South Africa and Bosnia and Herzegovina 30%. Malaysia, Kazakhstan, Tunisia, Japan, and South Korea will all be subject to a 25% tariff on their goods entering the US.
In the letters sent to the leaders of these countries, Mr. Trump emphasised that these tariffs are reciprocal, designed to address what he views as unfair trade practices. He explicitly warned that any retaliatory tariffs on American products would be met with an equivalent increase in US duties. However, he also left the door open for negotiation, indicating a willingness to reduce these tariffs if the nations revise their trade policies.
This latest development follows an earlier decision by the White House to delay the original July 9th tariff deadline to August 1st. This 90-day pause, initiated on April 9th after initial tariff announcements on April 2nd led to market instability, was intended to provide nations with more time to negotiate trade deals with the US. While some nations, like the UK and China, have successfully navigated these negotiations, others now find themselves facing the implementation of these new, significant tariffs.
The focus now shifts to the ongoing negotiations with India, as well as the reactions from the 14 nations facing these new duties. The coming weeks will undoubtedly see intense diplomatic efforts as countries seek to mitigate the economic impact of these tariffs and potentially re-engage in trade discussions with the Trump administration.
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