In a strategic and unilateral move, the U.S. government has extended its tariff pause from July 9 to August 1, 2025, and implemented new tariff rates for 14 countries, including key trade partners like Japan, South Korea, Malaysia, and Indonesia.
On July 7, 2025, President Trump invoked the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act, and the Trade Act of 1974, reaffirming a national emergency over the U.S. trade deficit. Executive Orders 14257 and 14266 originally set broad reciprocal tariffs and paused them for 90 days starting April 9. With that pause set to expire on July 9, the White House officially extended it via a tariff suspension directive through August 1st.
According to The New York Times, Treasury Secretary Scott Bessent, speaking July 6, confirmed that dozens of tariff-notice letters had been sent to countries detailing their specific rates, describing his inbox as “brimming with offers”. He stressed that the next 48 hours would be pivotal, saying it would be a “busy couple of days” as nations raced to negotiate terms.
Additional tariff letters will be released over the next 72 hours, leading up to the original July 9 deadline. Each letter formally communicates country-specific tariff rates and outlines the new enforcement rules.
Tariff Letters
| Country | New Tariff Rate | Initial Rate (Apr 2) | Tariff Letter Link |
| Bangladesh | 35% | 37% | Link |
| Bosnia and Herzegovina | 30% | 35% | Link |
| Cambodia | 36% | 49% | Link |
| Indonesia | 32% | 32% | Link |
| Japan | 25% | 24% | Link |
| Kazakhstan | 25% | 25% | Link |
| Laos | 40% | 48% | Link |
| Malaysia | 25% | 24% | Link |
| Myanmar | 40% | 44% | Link |
| Serbia | 35% | 37% | Link |
| South Africa | 30% | 30% | Link |
| South Korea | 25% | 25% | Link |
| Thailand | 36% | 36% | Link |
| Tunisia | 25% | 28% | Link |
Key Terms from the Letters
- Effective Date: All new tariff rates take effect August 1, 2025.
- Sectoral Tariff Stacking: Reciprocal tariffs now stack on top of Section 232 tariffs on steel, aluminum, and derivative articles, potentially raising total duties significantly.
- Transshipment Penalties: Goods deemed to be “transshipped to evade higher tariffs” may face elevated penalties, although the letters do not clearly define what qualifies as transshipment.
- Retaliation Clause: Any tariffs imposed in retaliation by a partner country will be added to the reciprocal rate stated in the letter.
- Adjustable Rates: Tariffs may be increased or decreased based on the future state of diplomatic and economic relations with the U.S.
Treasury Secretary Bessent confirmed that the U.S. is fielding proposals from dozens of countries and expects a flurry of trade activity leading up to the August 1 deadline. Only a few, such as Vietnam and the U.K., have reached preliminary agreements to date.
What’s Next?
With the first wave of letters issued and more than expected, the trade landscape remains in flux. Countries hoping to avoid these steep tariffs must act fast. Businesses are advised to monitor country-specific rates and deadlines, evaluate supply chain exposure and prepare for potential retaliatory tariffs or sourcing shifts.