Tariff delay extended to August 1 as Trump fuels uncertainty
What's the story
The United States will reimpose tariffs on imports from major trading partners starting August 1. These tariffs, originally announced by President Donald Trump on April 2, were paused until July 9. Commerce Secretary Howard Lutnick has confirmed that the tariff increases will now take effect on August 1, clarifying earlier confusion over whether they would begin this week. The April tariff plan included a base rate of 10% on most countries and additional duties up to 50%.
Confusion ensues
'President is setting the rates and finalizing the deals'
When asked by reporters whether the tariffs would take effect this week, Trump responded hesitantly, "No, they're going to be tariffs, the tariffs... the tariffs are going to be... I think we'll have most countries done by July 9, yeah. Either a letter or a deal." Sensing the ambiguity, Lutnick stepped in to clarify, "The tariffs go into effect on August 1. But the president is setting the rates and finalizing the deals right now."
Deal urgency
Deadline gives countries additional 3-week grace period
In a post on Truth Social, Trump said the US would begin delivering "TARIFF Letters, and/or Deals" to nations from 12pm ET on Monday. The new deadline of August 1 gives countries an additional three-week grace period, but also leaves importers in a prolonged state of uncertainty. So far, the Trump administration has struck deals with the UK and Vietnam. The US and China have also agreed to temporarily suspend high tariffs on each other's goods.
Markets react
Asian stock markets declined amid growing uncertainty
Asian stock markets declined on Monday amid growing uncertainty over US trade policy. Japan's Nikkei slipped 0.3%, while South Korean equities dropped 0.7%. India's Sensex was also in red, at the time of writing. In a separate post, Trump said, "Any country aligning itself with the anti-American policies of BRICS will be charged an ADDITIONAL 10% tariff. There will be no exceptions to this policy." His comment referred to the BRICS bloc comprising Brazil, Russia, India, China, and South Africa.