US President Donald Trump sent letters to heads of 14 countries on Monday, informing them of new tariff rates for their goods. The letters specify tariffs as high as 40% and give countries an extension until August 1 to negotiate deals.
Trump’s decision comes ahead of the initial deadline for countries to make deals or face higher tariffs, which was July 9. However, the US President announced he is extending the deadline to August 1. This move may provide more time for countries to negotiate mutually beneficial agreements with the US.
The letters are targeted at countries that have significant trade deficits with the US. Trump has taken issue with these deficits and said tariffs will be set in response to policies impeding American goods from being sold abroad. He encouraged country leaders to manufacture goods in the US to avoid tariffs.
Thirteen of the 14 countries received letters, including Japan, South Korea, Malaysia, Kazakhstan, and Indonesia. The remaining country, Cambodia, received a lower tariff rate of 36%, compared to 40% for other countries.
Trump’s decision has caused stocks to drop, with major Japanese automakers’ US-listed shares declining sharply after the announcement. The Dow closed lower by 422 points on Monday, while the S&P 500 fell 0.79% and the Nasdaq Composite dropped 0.92%.
Source: https://edition.cnn.com/2025/07/07/economy/trump-letters-tariffs