On July 7, U.S. President Donald Trump signed an executive order to postpone the implementation of the so-called "reciprocal tariffs" to 12:01 a.m. Eastern Daylight Time on August 1, 2025. Previously, Trump had delayed the policy by 90 days, and that grace period was originally set to expire at 12:01 a.m. EDT on July 9, 2025.
U.S. Secretary of Commerce Howard Lutnick called this the final opportunity for countries to negotiate with the United States. He added, "The tariffs will take effect on August 1, but President Trump is currently finalizing the specific rates and negotiating the final terms of agreements with various countries."
However, the White House stated that the separate tariff suspension measures imposed on China remain in effect and are not affected by the July 7 executive order. These measures were authorized under Executive Order No. 14298, issued on May 12, 2025, titled "Modification of China Reciprocal Tariff Rates to Reflect Bilateral Consultations."
Additionally, Trump announced that starting August 1, the U.S. will impose a 25% tariff on goods imported from Japan and South Korea. He also revealed two of the first twelve letters sent to trade partners, outlining the upcoming tariff policy changes these nations will face.
In letters published on his Truth Social platform addressed to the leaders of Japan and South Korea, Trump wrote:
"Regardless of the reason, if your country decides to raise tariffs, any increase-regardless of its magnitude-will be added on top of our current 25% tariff."
Trump further declared that the U.S. will impose 25% tariffs on goods imported from Malaysia and Kazakhstan, a certain percentage on imports from South Africa, and a 40% tariff on goods from Laos and Myanmar.
It is noted that South Korea's tariff rate remains consistent with what Trump initially announced on April 2, while Japan's rate has been increased by 1 percentage point. On April 9, Trump had capped all reciprocal tariffs at 10% and extended the negotiation buffer period to July 9 to allow time for talks. So far, however, the U.S. has only reached agreements with the United Kingdom and Vietnam.
The embassies of Japan and South Korea have not yet responded to the new policy announcements.
White House Press Secretary Karoline Leavitt told reporters that Trump intends to send tariff letters to about 12 countries but did not specify which. She added that more letters will be sent in the coming days and that "some trade deals are close to being finalized." According to sources quoted by Reuters on July 7, the European Union will not receive a tariff hike notification.
Trump's reciprocal tariffs will be applied separately from existing U.S. industry-specific tariffs-such as the 25% duty on imported cars and parts, or the 50% duty on steel and aluminum.
Nonetheless, the new reciprocal tariffs will directly impact the automotive sector. Imported parts not included on the automotive-specific tariff list will now be subject to reciprocal tariffs. These include components such as door handles, electronic control units, certain brake system elements, and advanced driver-assistance system (ADAS) modules.
Following the announcement, U.S. stock markets responded with a sharp decline. It marked the latest market reaction in the global trade conflict since Trump returned to the White House in January. On July 7, the S&P 500 fell nearly 1%, its largest single-day drop in three weeks. Shares of Japanese automakers listed in the U.S. also dropped, with Toyota down 4.1% and Honda falling 3.8% in afternoon trading. The U.S. dollar also surged against both the Japanese yen and South Korean won.
