U.S. President Donald Trump has reaffirmed that tariffs targeting 14 countries under his "reciprocal" trade policy will take effect August 1, 2025, with no deadline extensions. The announcement intensifies pressure on Asian economies like Malaysia, Thailand, and South Korea as global trade negotiations enter a critical phase.
In a Truth Social post, Trump stated: "All money will be due and payable starting AUGUST 1, 2025 – no extensions will be granted." This follows his recent disclosure of proposed tariffs ranging from 25% to 40% on select trading partners, including several Asian nations.
While the U.S. has secured agreements with the UK and Vietnam, along with a framework deal with the Chinese mainland, key Asian partners are accelerating last-minute negotiations. Japan's chief tariff negotiator Ryosei Akazawa expressed disappointment after a 40-minute call with U.S. Commerce Secretary Howard Lutnick, vowing to intensify bilateral talks ahead of the deadline.
South Korea's Industry Ministry announced plans to address U.S. concerns about trade deficits through regulatory reforms, while the European Union – America's largest bilateral trade partner – aims to finalize a deal within days. Trump noted: "We're probably two days off from sending them a letter. A letter means a deal."
The hardening deadline creates urgency for businesses and investors navigating supply chain uncertainties, particularly in technology and manufacturing sectors with deep Asian ties. Market analysts warn of potential short-term volatility as August 1 approaches.
