The 90-day tariff pause has come to an explosive end. On July 7, US President Donald Trump announced new tariffs on 14 countries—including major trading partners like Japan and South Korea facing 25% rates—just two days before the pause expired. The measures, set to take effect on August 1, 2025, impose tariffs ranging from 25% to 40% on countries such as Malaysia, South Africa, Indonesia, Bangladesh, Serbia, Thailand, Cambodia, Laos, and Myanmar. 🚨
Despite boasting on April 2 that over 100 countries were eager to negotiate, only a framework deal with Vietnam emerged. Talks with other key players—including the EU, the Chinese mainland, Mexico, Canada, Japan, South Korea, the Taiwan region, and India—stalled, leaving many to question the strategy. 📉
The fallout is evident in the numbers. In the first five months of 2025, the US global trade deficit surged to $604.42 billion—over $150 billion higher than last year. Should this trend continue, the annual deficit could exceed $1.44 trillion, marking a 20% jump over 2024. Meanwhile, an import surge (up 15.4%) contrasts sharply with a modest export rise of just 5.3%, with exports even dropping 4.0% in May. What was intended to narrow the trade gap has ironically widened it. 💥
Critics say that these unilateral tariffs, seen by some as heavy-handed, have disrupted international trade talks and complicated global economic relations. As nations react and adjust, the unfolding drama offers a stark reminder that bold tariff policies can produce unpredictable results in today’s interconnected market.
Reference(s):
cgtn.com
