Former U.S. President Donald Trump has reignited global trade tensions by announcing steep new tariffs on 14 countries, warning they could face duties of 25% to 40% starting August 1 unless they make trade concessions.
The move, part of Trump’s broader strategy to pressure trading partners into boosting U.S. exports and relocating manufacturing to the United States, marks a significant escalation in his ongoing trade agenda. Countries targeted include key U.S. allies such as Japan and South Korea, as well as Southeast Asian economies like Malaysia, Indonesia, and Thailand.
In near-identical letters to the leaders of affected countries, Trump said he was committed to “more balanced and fair TRADE” and left the door open for exemptions if countries eliminate tariffs and reduce trade barriers. He warned of further tariff increases if retaliatory measures are taken.
The highest tariffs, 40%, will hit Laos and Myanmar, while others, including Cambodia, Thailand, and South Africa, face rates between 30% and 36%. All were previously subject to a 10% baseline duty.
Asian officials responded cautiously. Japan called the move “truly regrettable,” while South Korea and Malaysia said they would intensify negotiations to secure more favourable trade terms before the deadline. However, experts say the region’s ability to present a unified response is limited due to differing national interests.
Analysts believe many countries may have to accept some level of tariff pain, as Trump’s measures appear more permanent than previously expected.