In a major escalation of trade tensions, US President Donald Trump has unveiled sweeping new tariffs of up to 40 percent on imports from 14 countries. Set to take effect on August 1, 2025, these measures are part of Trump’s strategy to reduce the US trade deficit and incentivize foreign companies to relocate manufacturing to American soil. The White House confirmed the move in an official statement, calling it a "reciprocal tariff" approach aimed at addressing trade imbalances.
Trump’s new tariff strategy
The newly announced tariffs will apply to all goods imported from the affected countries, separate from existing sector-specific tariffs (steel and automotive). Trump framed the decision as a push for economic sovereignty, stating, “There will be no tariff if they decide to build or manufacture products in our country.” He further warned that retaliatory tariffs by the targeted nations could trigger even higher US tariffs in response.
The new reciprocal tariffs can be seen at the table below.
| Country | New tariff rate (%) |
| Japan | 25 |
| South Korea | 25 |
| South Africa | 30 |
| Kazakhstan | 25 |
| Laos | 40 |
| Malaysia | 25 |
| Myanmar | 40 |
| Tunisia | 25 |
| Bosnia and Herzegovina | 30 |
| Indonesia | 32 |
| Bangladesh | 35 |
| Serbia | 35 |
| Cambodia | 36 |
| Thailand | 36 |
These tariffs could have wide-ranging effects on global supply chains, especially in sectors heavily reliant on imports from Southeast Asia and eastern Europe. Manufacturers, especially in Asia and Africa, risk losing the competitiveness of their products. SteelOrbis understands that the higher tariffs may drive up costs for US consumers and businesses alike.