, shifts the deadline for new tariffs from July 9 to August 1, 2025, giving countries an extra three weeks to negotiate deals with the US. Tariff Hikes Delayed, But Uncertainty PersistsAdvertisements The tariffs, originally set to take effect this week, target imports from 14 countries, including major US allies such as Japan and South Korea. Trump’s plan includes a 25% tariff on goods from these nations, with even steeper rates—up to 40 per cent—for countries like Myanmar and Laos. The White House has sent formal letters to the affected countries, reiterating that tariffs will begin August 1 unless satisfactory trade agreements are reached. Trump emphasized that this new deadline is “firm, but not 100 percent firm,” suggesting some flexibility for nations willing to negotiate. Global and Market Reactions The United Nations has warned that the extension, while providing short-term relief, only prolongs the uncertainty that has plagued global trade since Trump revived his aggressive tariff agenda earlier this year. Pamela Coke-Hamilton, director of the UN-backed International Trade Centre, said, “This move actually extends the period of uncertainty,” noting that businesses and investors require stability to make long-term decisions. Financial markets reacted swiftly. The S&P 500 index fell by about 1 per cent, its sharpest drop in three weeks, while the US dollar strengthened and gold prices slipped as investors weighed the prospects of a prolonged trade dispute. Major exporters to the US, such as Japan and South Korea, saw their currencies weaken, and emerging markets were rattled by the threat of further tariffs, particularly those aligned with the BRICS bloc. International Negotiations Intensify Countries are scrambling to avoid the looming tariffs. Japan and the US have agreed to “continue talks vigorously,” with Japanese officials expressing hope for a mutually beneficial agreement before the deadline. Other nations, like Cambodia, have celebrated partial victories after negotiating reductions in threatened tariffs, but the overall environment remains tense and unpredictable. US Treasury Secretary Scott Bessent confirmed that unless deals are finalized by August 1, the higher tariff rates announced in April will be enforced, warning, “If you don’t move things along, you will boomerang back to your April 2 tariff level”. Only the United Kingdom and Vietnam have so far managed to secure agreements to avoid the new levies. Broader Impact and Outlook Trump’s stated goal is to protect American industries and jobs from foreign competition, but economists warn that the tariffs could drive up prices for US consumers and disrupt global supply chains. The continued uncertainty is already affecting investment decisions and causing volatility in both developed and emerging markets. As the new August 1 deadline approaches, the world’s largest economies remain on edge, with the possibility of further negotiations—and further delays—still on the table. For now, Trump’s tariff strategy has bought time, but at the cost of prolonged instability in the global trading system For More Interesting News Follow Us on Instagram){kind=link}
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US President Donald Trump has as soon as once more thrown world commerce into uncertainty by delaying a significant spherical of tariff hikes, providing a short lived reprieve to US buying and selling companions however deepening considerations over the dearth of stability in worldwide markets.
The transfer, introduced through govt order on Monday (7), shifts the deadline for brand spanking new tariffs from July 9 to August 1, 2025, giving nations an additional three weeks to barter offers with the US.
Tariff Hikes Delayed, However Uncertainty Persists
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The tariffs, initially set to take impact this week, goal imports from 14 nations, together with main US allies corresponding to Japan and South Korea. Trump’s plan features a 25% tariff on items from these nations, with even steeper charges—as much as 40 per cent—for nations like Myanmar and Laos.
The White Home has despatched formal letters to the affected nations, reiterating that tariffs will start August 1 until passable commerce agreements are reached. Trump emphasised that this new deadline is “agency, however not 100% agency,” suggesting some flexibility for nations prepared to barter.
International and Market Reactions
The United Nations has warned that the extension, whereas offering short-term aid, solely prolongs the uncertainty that has plagued world commerce since Trump revived his aggressive tariff agenda earlier this 12 months. Pamela Coke-Hamilton, director of the UN-backed Worldwide Commerce Centre, mentioned, “This transfer really extends the interval of uncertainty,” noting that companies and buyers require stability to make long-term choices.
Monetary markets reacted swiftly. The S&P 500 index fell by about 1 per cent, its sharpest drop in three weeks, whereas the US greenback strengthened and gold costs slipped as buyers weighed the prospects of a protracted commerce dispute.
Main exporters to the US, corresponding to Japan and South Korea, noticed their currencies weaken, and rising markets had been rattled by the specter of additional tariffs, notably these aligned with the BRICS bloc.
Worldwide Negotiations Intensify
International locations are scrambling to keep away from the looming tariffs. Japan and the US have agreed to “proceed talks vigorously,” with Japanese officers expressing hope for a mutually useful settlement earlier than the deadline. Different nations, like Cambodia, have celebrated partial victories after negotiating reductions in threatened tariffs, however the general setting stays tense and unpredictable.
US Treasury Secretary Scott Bessent confirmed that until offers are finalized by August 1, the upper tariff charges introduced in April will likely be enforced, warning, “In case you don’t transfer issues alongside, you’ll boomerang again to your April 2 tariff degree”. Solely the UK and Vietnam have thus far managed to safe agreements to keep away from the brand new levies.
Broader Impression and Outlook
Trump’s said objective is to guard American industries and jobs from international competitors, however economists warn that the tariffs may drive up costs for US customers and disrupt world provide chains. The continued uncertainty is already affecting funding choices and inflicting volatility in each developed and rising markets.
As the brand new August 1 deadline approaches, the world’s largest economies stay on edge, with the opportunity of additional negotiations—and additional delays—nonetheless on the desk. For now, Trump’s tariff technique has purchased time, however at the price of extended instability within the world buying and selling system
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