President Donald Trump announced on Monday (July 7) that he will extend the deadline for implementing new "reciprocal" tariffs to August 1. This extension provides additional time for negotiations with several countries that are facing potential tariffs of up to 40%. The tariffs were initially set to take effect on July 9.
Trump has sent letters to leaders of Japan, South Korea, Malaysia, Kazakhstan, South Africa, Myanmar, and Laos, informing them of the new tariff rates. Japan and South Korea, two of America's largest trading partners, will face a 25% tariff. Other countries could see tariffs as high as 40%.
The tariffs are part of Trump's strategy to address trade deficits and policies that he believes hinder American exports. Trump has encouraged these countries to manufacture goods in the United States to avoid tariffs.
The announcement has already impacted the stock market, with shares of auto companies like Nissan, Toyota, and Honda declining sharply. The Dow Jones dropped by 667 points, while the S&P 500 and Nasdaq also fell.
White House press secretary Karoline Leavitt stated that Trump is receiving numerous calls from world leaders seeking to negotiate deals. However, only three deals have been reached in the past three months. Trump has warned that tariffs could increase further if any country retaliates with their own tariffs against the United States.