US President Donald Trump asserted that 14 countries will face fresh tariffs starting 1 August'25, if new trade agreements fail to take place. The list of countries receiving tariff notices includes major US trading partners: Japan, South Korea, Malaysia, Kazakhstan, South Africa, Laos, Myanmar, Tunisia, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia and Thailand.
The rates vary—25% for Japan, South Korea, Malaysia, Kazakhstan, and Tunisia; 30% for South Africa and Bosnia; 32% for Indonesia; 35% for Bangladesh and Serbia; 36% for Cambodia and Thailand; and 40% for Laos and Myanmar.
South Korea whispered it will address US demands to lower non-tariff barriers. Japanese Prime Minister Shigeru Ishiba said he was actively seeking a deal that would offer benefits for both the US and Japan. The comments came after Trump announced tariffs of 25% on goods from both countries.
Trump further threatened that he would put an additional 10 per cent tariff on any country that aligns with the bloc’s anti-American policies, essentially slamming the BRICS countries. The threat is also against any of their possible attempt to displace the US dollar as the global reserve currency.
Global Stock Market Impact
Globally, the Dow Jones Industrial Average fell 422.17 points, or 0.94%, to close at 44,406.36. The S&P 500 declined 0.79% to 6,229.98, while the Nasdaq Composite lost 0.92%, ending at 20,412.52. Trump, in a series of Truth Social posts, shared signed letters addressed to the leaders of South Korea, Japan, Malaysia, Kazakhstan, South Africa, Laos and Myanmar, detailing new tariff rates set to take effect on August 1. The US 10-Yr treasury yield has reinforced by 52% to reach at 4.41% from 4.38% as trade talks dragged on.
Speaking of the "big beautiful" tax bill, Tesla CEO and former-Trump-ally- turned enemy Elon Musk declared it would bankrupt America and announced the formation of a third U.S. political party, the America Party. Investors immediately tanked Tesla shares, which also weighed on Wall Street.
Countries around the region are fixing for bearing. For instance, Vietnam intends to sign more free trade agreements, improve supply chains, and branch out its export markets as it grapples with global uncertainty posed by the US tariff. Taiwan indicated it was cautiously optimistic about talks with the US after it avoided getting a letter from the Trump administration notifying trading partners of new tariff rates.
Metal markets are jolted
Trump also indicated that the US would implement a 50% tariff on copper imports, inciting a record prickle in New York futures and a drop in the global benchmark. The latest is a further addition to the rivet in a rowdy period for industrial commodities, as Trump aims to inspire more mining and smelting at home. Fees on steel and aluminium imports have already been increased.
Close to signing trade deal with India
Trump stated that the US was close to signing a trade deal with India, though he has yet to provide a date for this. However, due to the fresh uncertainties, buyers are likely going slow on new orders. While India has some advantages over Bangladesh, which faces a higher duty of 35% on natural garments, it faces challenges in the synthetic segment. In some instances, China is offering at considerable discounts despite facing gigantic tariffs from US.
Despite challenges, India’s total exports (merchandise & services) for May 202512 have registered a growth rate of 2.8 per cent (YoY) to an estimate of USD 71.1 billion from USD 69.2 billion in May 2024. This increase underscores the resilience of our exports in the face of tariff uncertainties and subdued global economic conditions. The merchandise trade deficit narrowed to USD 21.9 billion in May 2025 from USD 26.4 billion in April 2025, as goods exports have remained broadly stable. The services exports in May 2025 were estimated to be USD 32.4 billion. As a result, the combined goods and services trade deficit narrowed to USD 6.6 billion compared to USD 10.5 billion in April 2025.
Concluding Remarks
The tariffs announced by U.S. President Donald Trump, set to take effect on August 1, 2025, are part of a broader reciprocal tariff policy aimed at addressing trade imbalances with various countries, including India. Trump has warned of an additional 10% tariff on BRICS nations, including India, if they pursue de-dollarisation efforts, which could compound the impact if enacted. Nonetheless, India’s non-confrontational stance and ongoing trade talks reflect a strategic alignment with the U.S. to counterbalance China, despite a USD 100 billion trade deficit with the latter. India’s diversified export destinations (e.g., Europe, the Middle East) and focus on services (immune to tariffs) reduce its vulnerability. India is promoting domestic manufacturing and regional cooperation to build shorter, resilient supply chains.
The author of this article is- Vipin Malik, Chairman & Mentor Infomerics Ratings.