Trump intensifies trade war with new tariffs
On Monday, July 7, 2025, the White House announced that President Donald Trump will begin sending letters to world leaders —at least to Japan and South Korea— warning of the imposition of tariffs of 25% on their imports, effective August 1, if favorable trade agreements are not reached. These letters –up to 12, with the possibility of extending to 15– are part of Trump’s strategy of "reciprocal tariffs," initiated on April 2 in what he called "Liberation Day."
In his justification, Trump referred to the persistent trade deficits with Japan ($69.4 billion in 2024) and South Korea ($66 billion), advocating for tariffs of 25% in general, an additional 25% on automobiles, and up to 50% on steel and aluminum. He also warned of an additional 10% tariff on countries that align with the "anti-American" policies of the BRICS bloc.
Stock markets reacted with declines: the S&P 500 fell by 0.9%, the Dow Jones by 1.1%, and the Nasdaq recorded similar drops; in addition, the dollar strengthened and 10-year Treasury yields increased. Sectors linked to international trade, such as manufacturing and automotive, show signs of nervousness.
The negotiation deadline, initially set for July 9, has been tacitly extended to August 1, according to Treasury Secretary Scott Bessent. Trump has reiterated that if agreements are not finalized, the tariffs will be reapplied as announced in April.
This move marks a new phase of Trumpist protectionism and adds greater pressure on trading partners. The European Union, India, and China are among the countries at the center of these urgent negotiations. The world is now watching the coming days to see if concessions are made or if the trade conflict escalates further.
