Trump’s Tariff Ultimatum: 14 Nations Face Import Duty Hike from August 1

Trump’s Tariff Ultimatum: 14 Nations Face Import Duty Hike from August 1

CNB World Times

Washington, July 8 — In a bold escalation of his protectionist trade policy, former U.S. President Donald Trump on Monday initiated a wave of tariff threats, dispatching similarly worded letters to the leaders of 14 countries warning of increased import duties effective August 1 if new trade agreements are not concluded.

The first letters were sent to Japan and South Korea, followed shortly by notifications to South Africa, Indonesia, Thailand, Cambodia, Malaysia, Bangladesh, Laos, Myanmar, Bosnia, Serbia, Kazakhstan, and Tunisia.

Confirming the move at a press briefing, Trump stated, “I’m prepared to impose duties, for the most part, but the door remains open for negotiation.” He added that if better terms are not agreed upon soon, the tariffs will proceed as planned.

The potential impact of these duties could ripple through key sectors in the U.S. economy:

·         Japan (is a major supplier of automobiles, consumer electronics, and medical equipment. Tariffs could make vehicles, TVs, and diagnostic tools costlier.

·         South Korea exports semiconductors, ships, and auto parts, vital to U.S. tech and manufacturing industries.

·         Malaysia and Thailand are key sources of electronics, machinery, rubber, and seafood.

·         Bangladesh and Cambodia supply low-cost garments, leather goods, and furniture, popular among American retailers.

·         Indonesia provides footwear, electronics, and palm oil;

·         South Africa sends metals, fruits, and vehicles.

·         Serbia is known for agricultural equipment and furniture exports.

·         Myamar(Burma) sends apparel & footwear, seafood particularly shrimp and wood & forestry products

·         Bosnia and Herzegovina provide furniture & wood products, aluminum, steel, base metals & footwear & apparel

·         Kazakhstan sends crude oil, uranium, ferroalloys, zinc, copper & titanium

·         Tunisia exports textiles, apparel and electrical Components: Wiring harnesses and olive oil and dates

Countries Received Letters With New Tariffs

·         South Korea, Kazakhstan, Japan, Tunisia and Malaysia - 25 per cent tariffs

·         Bosnia & Herzegovina and South Africa  - 30 per cent tariffs

·         Indonesia - 32 per cent tariffs

·         Bangladesh and Serbia -  35 per cent tariffs

·         Cambodia and Thailand - 36 per cent tariffs

·         Myanmar & Laos - 40 per cent tariffs 

With negotiations still underway, the international response remains to be seen, but trade analysts warn that if implemented, the tariffs could lead to rising consumer prices and strained bilateral relations.