MW Trump's tariff letters are hitting. Here's how they differ from his earlier threats.
By Victor Reklaitis
President sends letters to Japan, South Korea, Malaysia, South Africa and other U.S. trading partners
President Donald Trump sent out tariff letters to U.S. trading partners on Monday as he had promised, starting with missives to Japan and South Korea before targeting Malaysia, South Africa and other countries.
After Trump posted the first two letters on his Truth Social platform, White House press secretary Karoline Leavitt said there would be "approximately 12 other countries" that receive letters from the president. They'd continue to get shared on Truth Social, she told reporters during a briefing. All U.S. trading partners will get a letter at some point, according to Leavitt.
Another batch of letters was posted following Leavitt's briefing, with Trump taking aim at Laos, Malaysia, Myanmar, South Africa and Kazakhstan.
The chart below shows how the levels and timing of Trump's country-specific tariffs have changed since he rolled them out during his "liberation day" event on April 2. These "reciprocal" tariffs were paused on April 9 for a 90-day period that had been due to end Wednesday, but Trump now is granting another extension until Aug. 1.
Trump unveils new tariff levels for Aug. 1
Trading partner New tariff rate New effective April 2 rate Prior effective dates Japan 25% Aug. 1 24% April 9, then July 9 South Korea 25% Aug. 1 25% April 9, then July 9 Laos 40% Aug. 1 48% April 9, then July 9 Malaysia 25% Aug. 1 24% April 9, then July 9 Myanmar 40% Aug. 1 44% April 9, then July 9 South Africa 30% Aug. 1 30% April 9, then July 9 Kazakhstan 25% Aug. 1 27% April 9, then July 9
South Korea and South Africa are facing the same "reciprocal" tariff that they were presented with on April 2, while other countries have seen their rate increased or decreased to 25% or a round number.
Trump's letters on Monday said the countries could get adjustments to the U.S. import taxes that they're facing if their officials change their trade policies toward the U.S. That basically gives them three and a half weeks to make offers to the Trump administration.
Leavitt said Trump will be signing an executive order on Monday that officially moves the the implementation date of any "reciprocal" tariffs to Aug. 1 from this Wednesday. U.S. trading partners had been bracing for potentially higher tariffs starting on Wednesday, but then Trump said last week that the U.S. would not start collecting those import taxes until Aug. 1.
U.S. stocks SPX added to their losses after Trump posted his letters to Japan EWJ and South Korea EWY.
From MarketWatch's archives (May 2025): 'Trump always chickens out' is the talk of Wall Street. Here's one way to play the 'TACO' trade.
-Victor Reklaitis
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July 07, 2025 15:37 ET (19:37 GMT)
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