Trump Resumes Tariff Offensive, Extends Deadline Amid Global Trade Uncertainty

By Staff, Agencies

US President Donald Trump has reignited his trade war campaign, threatening steep new tariffs on more than a dozen countries — while simultaneously signaling possible flexibility on a looming August 1 deadline.

In letters sent Monday to key trading partners, including allies Japan and South Korea, Trump announced that previously suspended tariffs would not only resume but increase. Both Tokyo and Seoul now face 25% duties, while other countries — including Indonesia, Bangladesh, Thailand, South Africa, and Malaysia — are being hit with tariffs ranging from 25% to 40%.

However, in typical fashion, Trump left room for negotiation. Speaking alongside visiting "Israeli" Prime Minister Benjamin Netanyahu, the president said the August 1 deadline was "firm, but not 100 percent firm," suggesting openness to alternative offers. "If they call with a different offer, and I like it, then we'll do it," he added.

Trump had originally unveiled the tariff scheme on April 2 — dubbed “Liberation Day” — implementing a baseline 10% duty on all imports and threatening higher rates. While the more punitive tariffs were paused for 90 days amid market turmoil, they were scheduled to resume this week. Trump's new order formally delays that escalation until August 1.

The letters to Japanese and South Korean leaders described their trade practices with Washington as “far from reciprocal,” and warned that any retaliation would provoke further escalation. According to posts on Trump’s Truth Social platform, Indonesia faces a 32% tariff, Bangladesh 35%, and Thailand 36%. Some countries, like Laos and Cambodia, saw comparatively lower increases.

Despite the White House’s ambitious pledge of “90 deals in 90 days,” only a handful have materialized, including agreements with the UK and Vietnam, and a partial de-escalation with China. Japan’s Prime Minister Shigeru Ishiba said he would not "easily compromise" in negotiations.

Wendy Cutler of the Asia Society Policy Institute warned the move could have a chilling effect: “Both Japan and South Korea have been close economic and security partners,” she said, noting their significant investments in US manufacturing.

US Treasury Secretary Scott Bessent suggested more trade announcements would be made within 48 hours. Meanwhile, the financial markets reacted negatively, with the Nasdaq dropping 0.9% and the S&P 500 falling 0.8%.

Trump also hinted at a 10% tariff on countries aligning with the BRICS bloc, accusing them of promoting “Anti-American policies” after their criticism of his trade actions.

Efforts to defuse the tensions continue, with the European Commission reporting a “good exchange” between Trump and EU Commission President Ursula von der Leyen during a weekend phone call.