Trump announces new Asian tariffs after failing to secure trade deals by deadline

U.S. President Donald Trump on Monday announced that he had sent letters to the heads of several Asian countries, informing them of a new round of “reciprocal” tariffs after talks failed to produce trade agreements before his self-imposed deadline. The new duties, set at 25% to 40%, are scheduled to take effect August 1 and will hit Southeast Asian nations especially hard.

Across ASEAN: Laos and Myanmar will both face steep tariffs of up to 40% while Thailand will see a 36% tariff imposed on its shipments. Indonesia has been assigned a 32% tariff and Malaysia will face 25%. Singapore remains largely unaffected, maintaining a baseline tariff of 10% that predates the new policy.

Cambodia will be subject to a 36% tariff on exports to the U.S., following last-minute negotiations that reduced the rate from an initially proposed 49%. Vietnam also reached a separate agreement to lower its tariff from a threatened 46% to 20% for most goods. Under the terms of that deal, Vietnam granted reciprocal zero tariffs for U.S. products, but goods identified as being transshipped from third countries, mainly China, will still face a 40% duty.

East and South Asian allies: Japan and South Korea, both U.S. allies, are facing a 25% tariff on a broad range of exports. Japanese Prime Minister Shigeru Ishiba described the move as “deeply regrettable” and said his government sees the situation as a national crisis. South Korean officials have also traveled to Washington in hopes of averting the tariffs before the August 1 implementation date.

Meanwhile, Bangladesh faces a 37% tariff on textiles, sparking concern in Dhaka over the potential impact on the garment sector. India’s apparel industry is preparing for increased U.S. demand if sourcing shifts away from Bangladesh.

Financial markets respond: Following the announcement, the S&P 500 fell by nearly 1% while Asian markets showed relative stability. Legal experts and international trade organizations have warned that challenges to the tariffs are likely, raising questions about the legal authority for such sweeping trade actions.

European leaders have also threatened reciprocal measures if negotiations with the U.S. stall. Additional tariffs on key materials such as copper and proposals for new restrictions on semiconductors and pharmaceuticals are adding further stress to global supply chains.