Today's News: Trump Announces New Tariffs and a Trade Deadline Extension
President Donald Trump announced new “reciprocal” tariffs ranging from 25% to 40% on goods from 14 countries, including major trading partners like Japan and South Korea.
Photo: Andrew Caballero-Reynolds/AFP
Overview
Date: July 7, 2025
Topic: President Trump’s Announcement of New Tariffs and Trade Deadline Extension
Summary: President Donald Trump announced new “reciprocal” tariffs ranging from 25% to 40% on goods from 14 countries, including major trading partners like Japan and South Korea, citing large trade deficits and perceived “anti-American” policies. Concurrently, he extended the deadline for countries to negotiate trade deals from July 9 to August 1 via an executive order, giving more time to avoid these duties. The move reignited trade war concerns, causing stock markets to fall. Trump also threatened an additional 10% tariff on countries aligning with the BRICS bloc. The administration aims to correct trade imbalances and encourage manufacturing in the United States, despite limited progress on new trade agreements so far.
Sources
CNN - Trump announces new tariffs of up to 40% on a growing number of countries
Fox Business - Trump threatens additional 10% tariffs on ‘anti-American’ BRICS nations
The Washington Post - Trump announces tariffs of at least 25 percent on 14 countries
The Wall Street Journal - Trump Pushes Global Trade War Back to the Top of His Agenda
Key Points
President Trump announced new “reciprocal” tariffs ranging from 25% to 40% on imports from 14 countries, including Japan, South Korea, Malaysia, Kazakhstan, Laos, Myanmar, South Africa, Tunisia, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia, and Thailand.
The previous July 9 deadline for countries to reach trade deals to avoid higher tariffs has been extended to August 1 via an executive order.
The tariffs are imposed in response to perceived trade deficits and policies that impede American goods from being sold abroad, with Trump urging countries to manufacture goods in the United States.
Trump threatened to raise tariff rates even higher if countries retaliate with their own tariffs or attempt to evade U.S. duties by shipping through other nations.
These new country-specific tariffs will not be stacked on top of existing or future sector-specific tariffs (for example, auto tariffs).
The announcements led to a decline in stock markets, with major indexes posting their worst day in about three weeks.
The administration’s goal is to compel trading partners to negotiate deals that rectify trade imbalances and bring jobs back to the U.S.
Trump also threatened an additional 10% tariff on any country aligning with the “anti-American policies” of the BRICS bloc.
Unique Highlights
CNN highlighted that Japan and South Korea, America’s sixth- and seventh-largest trading partners, accounted for 80% ($280 billion) of the $351 billion worth of goods imported from the first seven countries that received letters last year. It also specified that South Africa was the top foreign supplier of platinum to the U.S., and Malaysia was the second-top source of semiconductors. CNN also detailed the specific stock drops for U.S.-listed shares of major Japanese automakers Toyota, Nissan, and Honda.
NBC News mentioned that Trump’s ability to impose tariffs under the International Emergency Economic Powers Act (IEEP) is currently under court review. Treasury Secretary Scott Bessent emphasized that the president is focused on the “quality” of deals, not the “quantity.” It also noted that analysts from Capital Economics believe the uncertainty around tariffs may not bring the U.S. economy to a crashing halt, but could prove a setback for Federal Reserve officials reluctant to cut interest rates due to inflationary effects.
Fox Business included a quote from Richmond Federal Reserve Bank President and CEO Tom Barkin, who compared knowing the impact of Trump’s tariff policy to “driving through fog.” It also detailed the expansion of the BRICS alliance to include Indonesia, Iran, Egypt, Ethiopia, and the United Arab Emirates, and reported on the BRICS bloc’s statement criticizing unilateral tariffs and strikes on Iran without directly naming the U.S. or Iran. Fox Business also recalled Trump’s previous threat of a 100% tariff if BRICS nations replaced the dollar as a reserve currency.
The Washington Post quoted Wendy Cutler, vice president of the Asia Society Policy Institute, who expressed surprise at the measures against South Korea given its existing free trade agreement with the U.S. and questioned the value of such agreements. Cutler also noted the importance of cooperation with Japan and South Korea on semiconductors, energy, and chip building. The article also included Marcus Noland’s (Peterson Institute for International Economics) interpretation that Trump’s actions might be “another bluff.”
The Wall Street Journal included a quote from Wilbur Ross, Trump’s first-term Secretary of Commerce, who suggested that Trump was “moving the goal posts” for imposing tariffs while trying to “up the ante.” It also provided specific details on how new tariff rates for Myanmar, Laos, and Kazakhstan differed from their April levels (some decreasing, some increasing). The article noted that Trump’s emphasis on trade follows recent “big wins” like signing his tax and domestic policy megabill and brokering a cease-fire between Israel and Iran, alongside steadier U.S. job growth in June.
The New York Times provided a more detailed list of the 14 countries in the initial battery of letters. It also specified tariff rates for Thailand (36%) and Bangladesh (35%). The article elaborated on the challenges of negotiating with Japan and South Korea, noting their own elections and existing tariffs on their major exports like cars, steel, and electronics. It highlighted that companies from both countries have made significant manufacturing investments in the U.S. and that South Korea’s existing FTA with the U.S. means it has “less to offer” in new concessions. The New York Times also cited economists' concerns that the uncertainty created by tariffs appears to be slowing investment and hiring.
Contrasting Details
Malaysia Tariff Rate:
CNN stated that Malaysia is “set to face a 24% tariff versus the 25% rate Trump announced in April,” implying a decrease in the new rate compared to April.
The Wall Street Journal stated that “Malaysia’s new rate would rise to 25% from the 24% announced on Liberation Day,” implying an increase in the new rate compared to April.
The Newsie Project uses AI to summarize, compare, and contrast the reporting of the major US and world online news sources.
This is an evolving project. Tools, approaches, and output formats will change over time. The Newsie Project does not attempt to provide a definitive capsule of any news story. While the incidence of errors in these summaries is low, and I attempt to spot-check details, AI tools can hallucinate. Please click through and read the articles for details (some may be paywalled).