President Donald Trump is slated to sign an executive order today delaying the reciprocal tariffs that were set to take effect on Wednesday, July 9. The reciprocal tariffs will now take effect on August 1. Twelve additional countries will also receive notifications about new tariffs. Thus far, the White House has reached trade agreements with the United Kingdom and Vietnam, as well as a preliminary accord with China.
The U.S. will send letters detailing tariff rates for specific trading partners that have yet to reach a tariff deal with the Trump administration before the pause ends. Rates would range from 10% to as much as 70% – which would exceed the highest non-China rates announced on April 2. View letters to Japan and South Korea.
Japan – 25% (was 24% on April 2 announcement)
S. Korea – 25% (was 25% on April 2 announcement)
Kazakhstan – 25% (was 27% on April 2 announcement)
Malaysia – 25% (was 24% on April 2 announcement)
Laos 40% (was 48% on April 2 announcement)
According to the letters, the rates would be “separate from all Sectoral Tariffs” such as steel or aluminum or possible future sectoral tariffs. Finally, the letters note “If you wish to open your heretofore closed Trading Markets to the United States, we will, perhaps, consider an adjustment to this letter. These Tariffs may be modified, upward or downward, depending on our relationship with your Country.”
We expect more letters and possible announcements of deals up to July 9, and likely throughout the month now that the date for tariffs has been pushed to August 1. The Alliance will continue to update on future developments.
