Trump announces tariffs on 14 countries, extends deadline to August 1, EU faces 10% tariff proposal.
U.S. White House Extends Tariff Deadline and Announces New Trade Measures
The White House has announced that President Trump will sign an executive order extending the tariff negotiation deadline from July to August 1. Additionally, 12 countries will receive letters regarding trade, which will be published on the social media platform "Truth Social."
New Tariffs on Multiple Countries
Trump has declared tariffs ranging from 25% to 40% on products from 14 countries, including Japan and South Korea. Specific tariffs include:
- 25% on products from Malaysia and Kazakhstan
- 30% on South African goods
- 40% on products from Laos and Myanmar
- 25% on Tunisian goods
- 30% on Bosnia
- 32% on Indonesia
- 35% on Bangladesh and Serbia
- 36% on Cambodia
Starting August 1, 2025, a uniform 25% tariff will be applied to all goods imported from Japan and South Korea, excluding specific industry tariffs. If either country imposes additional tariffs, the U.S. will match them.
Trade Agreement Proposal with the EU
The U.S. has proposed a trade agreement to the EU, maintaining a 10% baseline tariff on all EU goods, excluding sensitive sectors like aircraft and spirits. However, the specifics of the agreement remain fluid and require Trump's approval.
Market Reactions to Tariff Announcements
Major Indices Decline
As a result of the tariff announcements, major U.S. indices fell:
- Dow Jones: -0.94% to 44,406.36
- Nasdaq: -0.92% to 20,412.52
- S&P 500: -0.79% to 6,229.98
Impact on Tech Stocks
The "Tech Seven" saw mixed results, with notable declines:
- Tesla: -6.79%
- Nvidia: -0.69%
- Microsoft: -0.22%
- Apple: -1.69%
- Amazon: +0.03%
- Google A: -1.53%
- Meta Platforms: -0.09%
Chinese Stocks Performance
Chinese stocks showed varied performance on the Nasdaq China Golden Dragon Index, which rose by 0.59%. Key movements included:
- Bilibili: +7.66%
- Baidu: +3.98%
- Xpeng Motors: -4.99%
- Alibaba: -2.24%
Upcoming Trade Agreements and Economic Outlook
U.S. Treasury Secretary's Announcement
Treasury Secretary Besant indicated that multiple trade agreements will be announced within the next 48 hours, although specific countries involved were not disclosed.
Federal Reserve's Interest Rate Projections
A report from the New York Fed suggests a 9% chance that the benchmark interest rate could return to near zero in the medium term, with rates expected to hover between 3% and 4% over the next two years.
Conclusion
The U.S. administration's recent tariff announcements and trade negotiations are expected to have significant implications for both domestic and international markets. Investors are closely monitoring these developments as they unfold.
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