Catenaa, Tuesday, July 08, 2025-President Donald Trump reignited trade tensions on Monday by threatening new tariffs on imports from key US allies, including Japan and South Korea, unless bilateral agreements are reached by August 1.
The move marks a sharp escalation in Trump’s second-term economic policy, targeting major trading partners with 25 percent tariffs on cars, steel, and electronics.
The executive order signed Monday delays the reimposition of tariffs originally scheduled for July 9, granting countries until the end of the month to strike new trade deals with the United States.
The administration’s list includes more than a dozen nations, notably Malaysia, Indonesia, and South Africa, alongside Japan and South Korea.
Markets reacted swiftly to the news. The S\&P 500 fell 0.8 percent as investors weighed the possibility of fresh trade conflict with countries that account for a significant share of US imports.
Other major indexes also closed lower.
The White House said the tariffs are part of a broader push to establish “reciprocal” trade arrangements, matching tariffs with those imposed by US trading partners. While some product categories may be exempt, most imports from targeted countries would be affected under the new scheme.
The trade pressure comes amid a broader geopolitical reset, as Trump continues to challenge longstanding alliances and seeks leverage through economic policy. Talks between U.S. and Asian officials are expected to intensify ahead of the August deadline.
