Trump pushes back tariff timeline with revised rates
President Trump announced overnight a significant shift in his trade policy, postponing the implementation of reciprocal tariffs from 9 July to 1 August. The revised plan includes adjusted tariff rates for 14 countries, with the White House indicating more announcements will follow.
The latest development has created considerable uncertainty across global markets. The timing change suggests the administration is still fine-tuning its approach to international trade relationships.
Strategic tariff approach targets countries and sectors
The latest tariff announcement covers 14 countries with rates ranging from 25% to 40%. Japan’s rate increased from 24% to 25%, while Cambodia saw a significant reduction from 49% to 36%.
Notable exclusions from this round include major trading partners such as the European Union, Taiwan, and India, suggesting these economies maybe still under trade negotiations. China, Mexico, and Canada are expected to have separate discussions due to existing trade agreements.
Beyond country-specific measures, the Trump administration is expected to announce sector-specific levies in due course. So far, automobiles, steel and aluminium already face specific tariffs. The probe on other sectors have begun with current investigations covering industries such as semiconductors, pharmaceutical goods, copper, and timber. When combined with country-specific tariffs, the impact on prices of goods and services can be far more severe than current levels suggest.