Trump Delays Implementation of Reciprocal Tariffs Until August 2025

On July 7, U.S. President Trump signed an executive order announcing that the implementation of so-called 'reciprocal tariffs' has been postponed until August 1, 2025, at 00:01 Eastern Daylight Time. Previously, Trump had delayed the tariffs by 90 days, which was set to expire on July 9, 2025. U.S. Secretary of Commerce Howard Lutnick stated that this represents the last opportunity for negotiations between the U.S. and other countries. Lutnick also noted that while tariffs will take effect on August 1, Trump is currently determining specific rates and finalizing agreements with various nations. According to a statement from the White House, based on Executive Order No. 14298 issued on May 12, 2025, the suspension of specific tariffs imposed on China remains in effect and is not affected by the July 7 executive order. Furthermore, Trump announced that starting August 1, the U.S. will impose a 25% tariff on goods imported from Japan and South Korea. He also revealed the first two letters from a batch of 12 sent to trade partners outlining upcoming tariff policies. In letters posted on his Truth Social platform to the leaders of Japan and South Korea, Trump stated, 'For whatever reason, if your country decides to raise tariffs, that amount will be added to the existing 25% tariff we currently have.' Additionally, Trump announced that the U.S. will levy a 25% tariff on goods imported from Malaysia and Kazakhstan, a certain percentage on goods from South Africa, and a 40% tariff on items from Laos and Myanmar. Reports indicate that the tariff rate for South Korea matches the level Trump initially announced on April 2, while Japan's rate has been raised by one percentage point from the initial announcement. On April 9, Trump set the maximum for all so-called 'reciprocal tariffs' at 10% and extended the buffer period for these tariffs to July 9 to facilitate negotiations with countries. However, to date, the U.S. has only reached agreements with the U.K. and Vietnam. The Japanese and South Korean embassies have not yet responded to these statements. White House Press Secretary Karoline Leavitt stated at a press conference that Trump will send tariff letters to about 12 countries but did not specify which ones. She added that more tariff letters would be sent in the coming days and noted that 'some trade agreements are close to being finalized.' Furthermore, sources informed Reuters on July 7 that the European Union will not receive notifications regarding increased tariffs from the U.S. The reciprocal tariff rates set by Trump will be independent of the specific industry tariffs already imposed by the U.S. government, such as the 25% tariff on imported vehicles and parts, and 50% tariffs on imported steel and aluminum. Nevertheless, these new reciprocal tariffs will directly impact the automotive industry, as imported parts not listed on the automotive-specific tariff list will be subject to these tariffs, while complete vehicles and parts on that list will be exempt. Parts not included in the automotive tariff list include door handles, electronic control devices, some braking systems, and advanced driver assistance system (ADAS) components. Following the report, U.S. stock markets reacted negatively, marking the latest market response since Trump initiated a global trade war upon returning to the White House in January. On July 7, the S&P 500 index fell nearly 1%, marking its largest single-day decline in three weeks; shares of Japanese automakers listed in the U.S. dropped, with Toyota's stock falling 4.1% during afternoon trading and Honda's stock declining by 3.8%; on that day, the dollar significantly appreciated against both the yen and the won.