#TrumpTariffs

Delay of Tariff Implementation and Trade Negotiation

President Trump has postponed the implementation of tariffs from July 9 to August 1, 2025. This delay provides additional time for 14 countries, mostly in Asia, to negotiate with the United States. The White House began sending official letters on July 7, 2025, detailing the new tariff rates. Trump stated that tariffs could be lowered if a mutually beneficial agreement is reached, but he also threatened to raise tariffs if any country takes retaliatory action.

Affected Countries and Tariff Rates

The letter on new tariff implementation contains a list of countries along with the percentage of import tariffs that will be imposed. Here are some of them:

* 25%: Japan, South Korea, Malaysia, Kazakhstan, Tunisia

* 30%: South Africa, Bosnia and Herzegovina

* 35%: Bangladesh, Serbia

* 36%: Cambodia, Thailand

* 40%: Laos, Myanmar

Malaysia experiences a tariff increase, while Thailand and Cambodia receive a slight reduction. Trump also offered tariff exemptions for countries willing to produce goods in the U.S.

Basis and Objectives of Tariff Policy

This tariff policy is part of Trump’s economic protectionism strategy re-launched in April 2025. Trump uses authority under the International Emergency Economic Powers Act (IEEPA), declaring a "national emergency." The main objectives of this policy are:

* To correct trade imbalances and address the U.S. deficit.

* To increase U.S. government revenue.

* To bring back manufacturing jobs to the U.S.

Many affected countries have expressed readiness to negotiate. Barclays analysts estimate the effects of the tariffs will be felt on the global economy in the second half of 2025, although the U.S. is expected to avoid direct recession. However, these tariffs are predicted to push U.S. core inflation above 3%, potentially delaying changes in Federal Reserve monetary policy.