New US Tariffs Announced One After Another, Malaysia Faces 25%

The US reciprocal tariff grace period will expire on the 9th. On the 7th, US President Trump announced on social media the letters sent to leaders of 14 countries, informing them of the new tariffs effective August 1st. In Asia, Japan, South Korea, and Malaysia are subject to a 25% tariff, Indonesia 32%, Thailand and Cambodia both 36%, Bangladesh 35%, and Laos and Myanmar both 40%.

On the same afternoon, Trump signed an executive order extending the reciprocal tariff grace period to August 1st.

Earlier in April, Trump announced reciprocal tariff measures on “Liberation Day”, imposing tariffs ranging from 11% to 50% on multiple countries, which caused turmoil in global financial markets. He subsequently announced a 90-day grace period, during which only a 10% base tariff was in force. Countries seized the opportunity to negotiate with the US, hoping to secure lower rates.

As the original July 9 grace period approaches, Trump recently stated that he would begin sending letters to countries that have not yet reached a trade agreement with the US, notifying them of the required tariff rates.

Starting at noon on the 7th local time, Trump began announcing the letters sent to leaders of Japan, South Korea, Malaysia, Kazakhstan, South Africa, Laos, Myanmar, Tunisia, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia, and Thailand, notifying them of the new tariffs. Singapore, India, and Taiwan have not yet received such letters.

The new tariff rates faced by the above 14 countries range from 25% to 40%. For some countries, the new rates are higher than initially announced reciprocal tariffs, for others they are lower or remain the same.

However, Trump hinted that further negotiations are possible and warned that any retaliatory measures would be met with equal responses. Trump wrote: "If for any reason you decide to raise tariffs, then whatever number you choose will be added on top of the 25% we are imposing."

In these nearly identical letters, Trump warned the recipients that if they raise tariffs in response, the US would increase tariffs by the same amount on top of the current rates. Meanwhile, if these countries or their enterprises decide to produce goods within the US, they will not be subject to these tariffs. If related countries open their domestic markets to the US and remove tariff and non-tariff trade barriers, "we may adjust the content of this letter, and the tariff rates may go up or down, depending on the relationship between our countries."

Asian countries notified of the new tariff rates, with brackets showing the change relative to the rates announced in early April:

Japan: 25% (+1)
South Korea: 25% (unchanged)
Malaysia: 25% (+1)
Kazakhstan: 25% (-2)
Indonesia: 32% (unchanged)
Bangladesh: 35% (-2)
Thailand: 36% (unchanged)
Cambodia: 36% (-13)
Myanmar: 40% (-4)
Laos: 40% (-8)