So far, 14 nations have received formal notices from the White House, among them smaller U.S. trade partners such as Serbia, Thailand, and Tunisia. The letters suggest a willingness to negotiate but also make it clear that any retaliatory measures will be met with equal force.

In messages posted on his Truth Social platform, Trump warned Japan and South Korea that any tariff increases they introduce would be matched and added on top of the newly announced 25% rate. “If you raise your tariffs, we’ll add your increase to our existing 25%,” the president stated.

These new duties are set to take effect August 1 and will not stack with prior tariffs on specific industries like automobiles, steel, and aluminum. This means, for instance, that Japanese car exports will continue to face a 25% tariff rather than being subjected to a cumulative 50%.

Countries have been under pressure to strike deals with Washington since Trump launched a broad trade offensive in April. That effort has created economic uncertainty and led to intense negotiations across the globe. In a move to extend the window for these talks, the administration said Trump would sign an executive order delaying the previous Wednesday deadline to August 1.

Despite months of discussions, few agreements have been finalized. So far, only the United Kingdom and Vietnam have reached new terms with the U.S. While South Korea’s tariff rate remains unchanged from earlier announcements, Japan’s has increased slightly from what was first proposed in April. A temporary cap placed on reciprocal tariffs at 10% has also been lifted.

Trade policy expert Wendy Cutler expressed concern over the decision to increase tariffs on close allies but noted there’s still time to reach compromise. “This is a setback, but negotiations aren’t over yet,” she said.

Trump later expanded the list of countries facing new tariffs: Tunisia, Malaysia, and Kazakhstan will face 25% duties; South Africa, Bosnia and Herzegovina 30%; Serbia and Bangladesh 35%; Cambodia and Thailand 36%; and Laos and Myanmar 40%.

Neither Japan nor South Korea issued immediate official responses.

The markets reacted negatively to the announcement. U.S. stock indexes dropped, with the S&P 500 falling 0.8%, its sharpest decline in three weeks. Shares of Japanese automakers also took a hit, with Toyota down 4% and Honda losing 3.9%. Meanwhile, the U.S. dollar rose sharply against both the Japanese yen and South Korean won.

Brian Jacobsen, chief economist at Annex Wealth Management, commented that the market slump reflected the impact of tariff tensions. He described the administration’s letters as tough, offering little room for negotiation.

U.S. Treasury Secretary Scott Bessent added that several trade-related updates were expected within 48 hours, indicating intense behind-the-scenes activity as countries seek last-minute arrangements.

European and BRICS Trade Stance

The European Union, notably, has not received one of the new tariff letters. EU officials say discussions are ongoing, with hopes of reaching a deal by July 9 following what they called a “positive” exchange between European Commission President Ursula von der Leyen and Trump.

Still, it’s unclear whether real progress has been made. The EU remains split on whether to push for a fast, limited trade agreement or hold out for stronger terms. Efforts to secure a broader deal had already stalled before the new deadline was extended.

Separately, Trump warned the BRICS nations—Brazil, Russia, India, China, and others—that adopting anti-U.S. policies could result in an additional 10% tariff on their exports. The warning coincides with a BRICS summit currently being held in Brazil.