U.S. President Donald Trump reignited trade tensions on Monday (July 7, 2025), threatening steep tariffs on over a dozen countries, including key allies Japan and South Korea — but then signaled potential flexibility on the August 1 deadline to finalize deals.
In letters posted on Truth Social, Trump said suspended tariffs would snap back in three weeks, with Tokyo and Seoul facing 25% duties and other countries, including Indonesia, Bangladesh, Thailand, South Africa, and Malaysia, hit with tariffs ranging from 25% to 40%.
However, Trump left the door open for negotiations. “I would say firm, but not 100% firm,” he told reporters at a dinner with Israeli Prime Minister Benjamin Netanyahu. Asked whether the letters were final, he added, “If they call with a different offer, and I like it, then we’ll do it.”
The tariffs stem from Trump’s April 2 “Liberation Day” announcement, which introduced a baseline 10% duty on all imports, with higher rates later suspended for 90 days. Those tariffs were set to take effect Wednesday, but Trump signed an order delaying them until August 1.
In near-identical letters to Japanese and South Korean leaders, Trump cited a lack of “reciprocal” trade and warned against retaliation. Indonesia will face a 32% tariff, Bangladesh 35%, and Thailand 36%. Laos and Cambodia saw lower rates than initially threatened.
The administration has pledged “90 deals in 90 days” but has finalized only two — with the UK and Vietnam — alongside a de-escalation pact with China.
Japan’s Prime Minister Shigeru Ishiba called the tariffs “genuinely regrettable.” South Korea’s National Security Adviser Wi Sung-lac met with U.S. counterpart Marco Rubio, pushing for a summit to resolve key issues. Thai acting PM Phumtham Wechayachai said he was seeking a “better deal” than the proposed 36% duty. Malaysia’s trade ministry reiterated its commitment to a “balanced, mutually beneficial” agreement.
White House Press Secretary Karoline Leavitt said Trump chose Japan and South Korea first because “it’s the president’s prerogative.”
U.S. Treasury Secretary Scott Bessent promised more agreements soon: “We are going to have several announcements in the next 48 hours.”
Markets reacted negatively to the renewed tariff threats. The Nasdaq fell 0.9%, and the S&P 500 dropped 0.8%.
Trump also warned of a further 10% tariff on countries aligning with BRICS, accusing them of “anti-American policies” following criticism of his trade agenda at a recent summit.
Still, partners are pushing to avoid the looming tariffs. The European Commission said EU chief Ursula von der Leyen had a “good exchange” with Trump in a call Sunday.
