Cliff Notes – Trump reveals First Nations to pay delayed ‘liberation day’ tariffs
- Donald Trump is imposing new trade tariffs starting from 1 August, applying rates of up to 40% on goods from countries including Japan, South Korea, and South Africa, among others.
- The tariffs target perceived trade imbalances and may be adjusted based on the US’s relationship with each country.
- The implementation of these tariffs follows a paused escalation in April, with corresponding letters sent to affected nations warning against retaliatory measures.
Trade war: Trump reveals First Nations to pay delayed ‘Liberation Day’ tariffs
Donald Trump has revealed hefty trade tariffs against at least seven countries, to be applied from 1 August.
The initial announcement, via his Truth Social platform, concerned Japan and South Korea.
Both would face 25% rates on all goods, he said.
Malaysia and Kazakhstan were later added to the list, while South Africa was told it faced a 30% rate.
Laos and Myanmar were hit with 40% duties.
It marks the restart of the threatened “liberation day” escalation that was paused in April, for 90 days, to allow for negotiations to take place with all US trading partners.
Sending each nation a letter
The US president is sending each nation a letter to inform them of the tariff rates they face and warn against retaliatory tariffs.
Those duties will come on top of sector-specific tariffs – such as 50% rates covering steel – which are already in force.
Mr Trump says in the letters that rates can be adjusted “upward or downward, depending on our relationship with your country”.
Country-specific tariffs had been due to take effect from Wednesday this week but Mr Trump had earlier revealed that nations would start to get letters instead, setting out the US position.
Duties would take effect from 1 August, without any subsequent deal being agreed, it was announced.
The letters sent to Japan and South Korea cited persistent trade imbalances for the rates and included the sentence: “We invite you to participate in the extraordinary Economy of the United States, the Number One Market in the World, by far.”
He ended both letters by saying, “Thank you for your attention to this matter!”
The European Union
The European Union – the biggest single US trading partner – is among those set to get a letter in the coming days.
Mr Trump has also threatened an additional 10% tariff on any country aligning itself with the “anti-American policies” of BRICS nations – those are Brazil, Russia, India, China and South Africa and whose members also include Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.
The UK, bar a massive shock U-turn, should be exempt.