The first wave of Trump's tax letter: 14 countries including Japan and South Korea will face taxes ranging from 25% to 40%, effective August 1, and the EU may be close to an agreement

On July 7th, Eastern Time, U.S. President Trump directly notified the first wave of tariff imposition actions. First, Trump announced a letter to Japan and South Korea regarding new tariffs. Early Monday afternoon, according to CCTV News, Trump posted letters to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung on social media, stating that the U.S. will impose a 25% tariff on all products from Japan and South Korea starting August 1, 2025. Next, according to CCTV News, the White House stated on the 7th that 12 other countries will receive letters regarding trade, and in addition to these 12 countries, the U.S. will send out more letters, indicating that Trump will sign an executive order to extend the deadline for tariff negotiations from July 9 to August 1. Subsequently, Trump announced the tariff rates for another 12 countries. Starting August 1, the U.S. will impose a 25% tariff on products imported from Kazakhstan, Malaysia, and Tunisia, a 30% tariff on South Africa and Bosnia and Herzegovina, a 32% tariff on Indonesia, a 35% tariff on Bangladesh and Serbia, a 36% tariff on Thailand and Cambodia, and a 40% tariff on Laos and Myanmar. Trump stated that the newly disclosed tariffs will be independent of various industry tariffs. In the letters sent to Japan, South Korea, and the aforementioned 12 countries, Trump indicated that: Any attempts to circumvent the new tariffs by transshipping through third countries will be subject to higher tariffs. If companies from these countries choose to establish factories or produce products within the U.S., they will not be subject to these tariffs. If these countries decide to raise tariffs on U.S. goods, the U.S. will impose an equivalent increase on the existing new tariff rates. Trump and the White House did not disclose what tariff rates the European Union will face. However, according to media reports, the EU will not receive letters from the U.S. regarding increased tariffs, as the EU is close to reaching an agreement with the Trump administration. Other media reported that the EU is seeking to finalize a preliminary trade agreement with the U.S. to lock in tariffs at 10% after August 1, allowing for further negotiations towards a permanent agreement, and is also seeking exemptions from baseline tariffs on major European exports to the U.S., including aircraft and alcoholic beverages. Earlier on Monday, EU spokesperson Olov Gill stated that the U.S. and EU are close to reaching a principled trade agreement. Portuguese Finance Minister Joaquim Miranda Sarmento mentioned that the tariff under the agreement could be lower than 10%