US announces reciprocal tariffs of 25-40%; to come into force from Aug 1

In the first lot, the US government has announced reciprocal tariffs on Japan (25%), South Korea (25%), Laos (40%), Myanmar (40%), South Africa (30%), Malaysia and Kazakhstan (25%).

US President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, on April 2, 2025, in Washington. (FILE Photo | AP)

The US government has started announcing the much-awaited reciprocal tariffs as President Donald Trump shot off letters to a number of countries announcing the imposition of new tariffs, which range from 25% to 40%. In the first lot, the US government has announced reciprocal tariffs on Japan (25%), South Korea (25%), Laos (40%), Myanmar (40%), South Africa (30%), Malaysia and Kazakhstan (25% each).

The announcements were made on Monday, ahead of the expiry of 9^th July deadline.

The US has sent letters to the respective heads of state, notifying them of the new tariffs on goods imported from these countries. These tariffs will come into effect from August 1. The letters sent to the countries carry similar language, stating that the US is willing to continue working with them despite the significant trade deficits. “Nevertheless, we have decided to move forward with you, but only with more balanced and fair trade,” reads the letter posted by US President Donald Trump on the social media platform Truth Social.

The letter says the tariff rates are “still far less than what is needed to eliminate the trade deficit with these nations.”

“Our relationship has been, unfortunately, far from reciprocal. Starting on August 1, 2025, we will charge Japan a tariff of only 25% on any and all Japanese products sent into the United States, separate from all sectoral tariffs,” says the letter addressed to the Japanese prime minister.

The letter further warns that goods transshipped to evade a higher tariff will still be subject to that higher rate. However, it also states that there will be no tariff if a country, or companies within it, choose to build or manufacture products within the US. The Trump administration has promised to do everything possible to ensure approvals are granted “quickly, professionally, and routinely in a matter of weeks.”

President Trump had earlier hinted that letters informing the imposition of reciprocal tariffs have been drafted for 12 countries.

Meanwhile, India has been actively engaged in discussions with the Trump administration to finalize a ‘limited’ trade deal with the US in an effort to avoid the imposition of a 26% reciprocal tariff. India is hoping to finalise the deal before the expiry of 9^th July deadline.