Trump Keeps Tariff Guessing Game Alive With ‘Not 100% Firm’ Deadline — Here Are the New Levies On 14 Key Trading Partners

U.S. President Donald Trump confirmed an extension to the tariff deadline by signing an executive order to delay implementation until Aug. 1. The temporary relief did not bring cheer to the market as the president simultaneously announced a steep rise in levies for key trading partners from the prevailing baseline rate in the event of them not clinching a bilateral deal by the new cut-off date. 

Trump reasoned that the extension was done by factoring in additional information and recommendations from various senior officials based on the status of discussions with trading partners.

Beginning Monday afternoon, the president started sharing screenshots of nearly identical letters he had sent to 14 key trading partners regarding the rate that would take effect by Aug. 1. In his letter, he communicated country-specific tariff rates, which he clarified were separate from all sectoral tariffs.

Trump also warned against evasion through the transshipment route. Goods transhipped to evade a higher tariff will be subject to the higher tariff, he said. The president clarified that the tariff rates would not apply if the trading partner decided to move manufacturing to the U.S. 

He also said if any of its trading partners decide to impose reciprocal tariffs, the U.S. will hike the applicable rate by the same magnitude. 

The ongoing uncertainty around the Trump tariffs, originally announced on April 2 and subsequently suspended for 90 days, remains an overhang on the otherwise high-flying market.

U.S. stocks fell on Monday in response to Trump's tariff-related announcements, but the SPDR S&P 500 ETF (SPY), an exchange-traded fund that tracks the broader S&P 500 Index, is up 6.5% year-to-date.

The SPY ETF was the most active ticker on Stocktwits early Tuesday, with retail sentiment tilting ‘bullish.’

The countries that Trump addressed via letters dated July 7 are as follows:

Trump, however, still left the room open for countries to come around. Talking to reporters after his dinner with visiting Israeli Prime Minister Benjamin Netanyahu, the president suggested that the Aug. 1 deadline may not be firm.

“I would say firm, but not 100% firm,” he said.

Incidentally, Trump earlier warned of a 10% additional levy on those nations siding with the BRICS alliance, which is heavily promoting de-dollarization. 

Japanese Prime Minister Shigeru Ishiba regretted the development and hinted at finalizing deals as soon as possible, according to Bloomberg. 

South Korea’s Industry Ministry said in a statement, “We will use this opportunity to advance key industries through the manufacturing renaissance partnership between our two countries, while also enhancing domestic systems and regulations — areas of particular interest to the US in its efforts to reduce trade deficits.”

Myanmar’s Deputy Commerce Minister, H.E. U Minn Minn, reportedly said that the domestic government was working on an offer to appease Washington. A spokesperson for Indonesia reportedly stated that there is still room to respond based on signals from the U.S. Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, who is leading the trade negotiations, is due to arrive in Washington on Tuesday for talks.

The Vietnam trade deal Trump flagged last week set a 20% tariff rate on exports from the country, down from the previously fixed 45% rate. The Southeast Asian nation was also required to allow more U.S. goods into its market.

A Bloomberg report stated on Monday that the European Union is scrambling to finalize a preliminary trade deal framework with the U.S., which would maintain the 10% baseline rate beyond the Aug. 1 deadline. The 27-nation bloc eventually aims for a more binding and legally binding final agreement. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: CoreWeave CEO Admits Oracle Is A 'Formidable' AI Rival, But Touts Long-Term Edge With Software Stack