The Trump admin has a new tariff plan

At least 14 countries are set to face upgraded US tariffs starting next month, President Trump announced yesterday. He also signed an executive order delaying so-called reciprocal tariffs on dozens of countries from tomorrow to August 1.

The current state of play

Under Trump’s previous executive orders on trade, the 90-day pause for his reciprocal tariffs on nearly all US trading partners was set to expire at 12:01 AM tomorrow.

• The Trump admin says nations that strike a trade deal with the US could be exempted from that hike, or receive more time to negotiate.
• But countries that don’t strike a deal will receive letters outlining the new tariff levels they'll have to pay, which could take effect as early as August 1.

For most of the 14 countries who received letters yesterday—including Japan, South Korea, South Africa, and Thailand—their new tariff rates are essentially the same as what Trump announced in April, give or take a few percentage points.

How many trade deals have materialized? So far, Trump admin officials say three countries have negotiated agreements to avert higher American tariffs: the UK, China, and Vietnam. However, details of Trump’s deals with China and Vietnam haven’t been released, while key aspects of the UK agreement have yet to be finalized.

US markets reacted poorly. All three major indexes turned in their worst daily performance since mid-June, with dips that coincide with Trump’s initial tariff announcement (S&P: -0.8%; Dow: -0.9%; Nasdaq: -0.9%).

Looking ahead…In comments yesterday, White House press secretary Karoline Leavitt said more tariff letters will be sent to world leaders in the coming days.