#TrumpTariffs 📅 What’s Happening?
New Tariff Letters: On July 7–8, 2025, Trump sent letters to 14 countries — including Japan, South Korea, Bangladesh, Myanmar, and Laos — notifying them of planned “reciprocal” tariffs set to begin August 1. These range from 25% to 40%, depending on the country .
Sector-Specific Levies: Alongside these, Trump announced steep tariffs on:
Copper imports: **50%**
Pharmaceuticals: up to 200%, with at least a year’s notice .
Deadline Shift: What was initially a July 9 deadline has been postponed to August 1. Trump states “no further extensions” will be granted .
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🌍 Global Reactions
Shock among allies: Countries like Japan and South Korea have expressed surprise, anger, and frustration at receiving tariff letters with little warning — some see it as a threat to long-standing diplomatic relations .
Diplomatic pushback: Japan, South Korea, South Africa, and others are scrambling to negotiate exemptions or reductions before the deadline .
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📊 Market Response
Mild volatility: While markets dipped (S&P 500 down ~1%), many investors are unfazed—this follows a familiar pattern dubbed “TACO” (Trump Always Chickens Out), anticipating potential reversals .
Ongoing uncertainty: Rapid shifts have rattled businesses, with some delaying investment decisions. Small and midsize exporters, especially in Asia, are particularly affected .
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🔺 Historical Context
This wave builds on a series of tariffs introduced earlier in 2025 — from “Liberation Day” rates to steel, aluminum, auto tariffs, even invoking emergency powers under the IEEPA. These have since been legally challenged, paused, and selectively rolled back .
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✅ What Comes Next?
1. Negotiations intensify: A three-week window remains for affected countries to strike bilateral deals before August 1. Japan and South Korea are leading the charge.
2. Possible more letters: Trump has indicated additional tariff notices are forthcoming .
3. Monitoring markets & legal status: Keep an eye on stock/futures.