Cliff Notes
- The Trump administration has extended the effective date for tariffs on US imports, with a new expiry set for 1 August, following a 90-day pause that was due to end soon.
- President Trump announced that countries would receive “letters and/or deals” while also threatening an additional 10% tariff for nations supporting BRICS’ anti-American policies.
- Market reactions have been muted compared to previous tariff announcements, with major stock indexes across Asia and the UK experiencing slight declines.
Trump tariff deadline extended as new threats issued to BRICS states
The date for Trump’s tariffs to take effect has been extended, with deals being sent to countries from Monday evening, the president said.
The 90-day pause on country-specific taxes on US imports was due to end on Wednesday, but instead will expire on 1 August, the Trump administration said.
Trump wants to monopolise global payments
The US president’s signature economic policy of tariffs meant countries across the world were hit with individual tariffs, causing havoc with international trade.
But Mr Trump appeared to be in deal-making mode early Monday, posting on his social media network, Truth Social, that countries would receive “letters and/or deals” from 5pm UK time.
However, he also made an additional threat of an extra 10% tariff for “any country aligning themselves with the anti-American policies of BRICS”.
Market reaction
The BRICS (Brazil, Russia, India, China, South Africa) organisation of countries also includes Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.
Reaction has been far more muted than the big market moves when the country-specific tariffs were announced on 2 April’s “Liberation Day” announcement, but the news has not been welcomed.