After a tense 90-day moratorium, US President Donald Trump announced on July 7 that tariffs will kick back in on 14 major trading partners from August 1, 2025. Key targets include Japan and South Korea, each slapped with a 25% duty. Other nations—from Malaysia (25%) to Myanmar (40%)—face levies as steep as 40%, stirring discontent across Asia, Africa, and Europe.
The tariff pause had promised dialogue: in April, President Trump claimed more than 100 nations were lining up for deals, but by July only a framework accord with Vietnam was in place. Talks with the EU, Japan, Canada, Mexico, and India remain stalled. In 2024, the US logged a $1.2 trillion global trade deficit, almost entirely tied to its top ten partners—among them the EU, the Chinese mainland, Mexico, Canada, Japan, South Korea, China's Taiwan region, Vietnam, India, and Malaysia.
Japan's Prime Minister Ishiba Shigeru gave a firm rebuttal, setting the stage for renewed trade frictions. The collapse of the 90-day talks underscores how complex supply chains and mutual dependencies challenge unilateral measures.
Data show the tariffs backfired. In the first five months of 2025, the US trade gap surged to $604.42 billion—up $150 billion year-on-year. If trends hold, 2025's shortfall could top $1.44 trillion, a 20% jump from last year's record. Deficits with the EU soared 48.5% to $137.31 billion, while Canada and Mexico combined saw a 15.2% rise to $105.07 billion.
US imports jumped 15.4% to $1.5 trillion amid 'tariff panic,' while exports crept up just 5.3% through May—and even fell 4.0% in May alone. The irony is stark: duties intended to protect domestic producers have fueled import growth and held back exports.
With global talks at an impasse and new levies looming, experts warn that persistently high trade deficits and tit-for-tat duties could reshape supply chains. As businesses and policymakers brace for impact, the world watches whether fresh negotiations will emerge or if a more fragmented trading system takes hold.
Reference(s):
cgtn.com
