Trump announces tariff rates for numerous countries — but not Canada

U.S. President Donald Trump sent letters to governments around the world on Monday informing them of the tariff rates he would impose starting Aug. 1 — though Canada’s July 21 deadline to reach a deal appears to remain.

Trump said he would impose a 25 per cent tariff on imports from Japan and South Korea beginning next month, marking a new phase in the trade war he launched earlier this year.

The letters sent to 14 countries so far — which included smaller U.S. exporters, like Serbia, Thailand and Tunisia — hinted at opportunities for additional negotiations while at the same time warning that any reprisal steps would be met with a like-for-like response.

“If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the 25 per cent that we charge,” Trump said in letters to the Japanese and South Korean leaders, which he posted on his Truth Social platform.

The higher tariffs take effect on Aug. 1 and notably will not combine with previously announced sector tariffs, such as those on automobiles and steel and aluminum.

Later, Trump also announced the U.S. will impose 25 per cent tariffs on Tunisia, Malaysia and Kazakhstan; 30 per cent on South Africa and Bosnia; 32 per cent on Indonesia; 35 per cent on Bangladesh and Serbia; 36 per cent on Cambodia and Thailand; and 40 per cent on Laos and Myanmar.

The rate for South Korea is the same as Trump initially announced on April 2, which he was calling “Liberation Day,” while the rate for Japan is one point higher than first announced. A week later, he capped all of the so-called reciprocal tariffs at 10 per cent until July 9 to allow for negotiations.

Only two agreements have been reached so far with Britain and Vietnam.

South Korea said in a statement it will step up trade negotiations with the United States in the period leading up to Aug. 1 to achieve mutually beneficial results and to advance both countries’ key industries through “renaissance partnership.”

Japanese Prime Minister Shigeru Ishiba said Tuesday that Tokyo would continue negotiations with the U.S. to seek a bilateral trade deal that benefits both countries.

Japan has received a proposal from the United States to continue trade discussions until the newly set Aug. 1 deadline, Ishiba said in a meeting with cabinet ministers to discuss Japan’s strategy in dealing with U.S. tariffs.

Trump signed an executive order on Monday formally delaying the July 9 deadline to Aug. 1, adding that “we are close” on some deals.

The European Union will not be receiving a letter setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday.

Moves felt by markets

U.S. stocks fell in response, the latest market ruction since Trump unleashed a global trade war on his return to office in January. His moves have repeatedly whipsawed…