Trump delays tariff deadlines
The US President sent 14 letters to various heads of state yesterday issuing new tariff rates and start dates
US President Donald Trump | The White House/Molly Riley/"P20250627MR-0644″ (CC license)
This is a segment from the Forward Guidance newsletter. To read full editions, subscribe.
President Trump’s sweeping Liberation Day tariffs were broadly expected to go into effect tomorrow, July 9. But things have changed.
After seeing various updates and changes to Trump’s trade policies — both on rates and timing — we can’t say we were shocked by yesterday’s news. Traders appeared relieved by the prospect of deals, with US stocks recovering early in today’s session after dipping Monday.
The moves come after Trump signed an executive order Monday delaying the start of all “reciprocal tariffs” (announced in April) to Aug. 1. More than a dozen countries also got updated levies.
Imports from Japan and South Korea will have a 25% tariff. Japan’s Liberation Day rate was 24%, while South Korea’s was 25%.
South Korea has said it plans to negotiate this figure down in the coming weeks. Japanese Prime Minister Shigeru Ishiba on Tuesday called Trump’s decision “extremely regrettable.” Even so, Ishiba hopes to come to an agreement with the US as well.
Other countries that received letters yesterday include Malaysia, which will now face a 24% rate — vs. the 25% levy unveiled in April. In his letter to Cambodia, Trump declared a 36% rate, compared to 49% on Liberation Day.
Wondering if Aug. 1 is a hard deadline? Trump essentially told reporters yesterday: Maybe.
“I would say firm, but not 100% firm,” he said.
Trump is hosting a Cabinet meeting today to discuss the trade situation, among other things. He also faced questions about the war in Ukraine (“it’s turned out to be tougher”) and Fed Chair Jerome Powell (“I think he’s terrible”).
Check back tomorrow for insights into the meeting.
Get the news in your inbox. Explore Blockworks newsletters:
- The Breakdown: Decoding crypto and the markets. Daily.
- 0xResearch: Alpha in your inbox. Think like an analyst.
