Trump Imposes New Tariffs on Multiple Countries

President Donald Trump sent letters to several countries informing them of new tariff rates, but extended the deadline for reciprocal tariffs to August 1, except for China. The new rates vary compared to April levels. Trump emphasized the importance of reducing trade deficits and encouraged countries to manufacture goods in the US to avoid tariffs.

Japan and South Korea will face a 25% tariff on August 1, with both countries expressing intentions to negotiate further. Trump also sent letters to Malaysia, Kazakhstan, South Africa, Myanmar, Laos, Tunisia, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia, and Thailand, outlining new tariff rates as high as 40%.

The US bought $465 billion worth of goods from these countries last year, with Japan and South Korea accounting for $280 billion. Higher tariffs could impact prices for goods like cars, auto parts, semiconductors, pharmaceuticals, and machinery. Stocks dropped as Trump announced tariffs, with auto companies' shares declining.

Despite threats of higher tariffs, the European Union did not receive a letter. The Dow, S&P 500, and Nasdaq fell, marking their worst day in three weeks. Asian stocks traded flat on Tuesday.

According to the source: CNN.