Which countries are the world hit by the new tariffs, and what basis were these countries chosen? What is the road ahead from here? We explain, in 3 points.

What Tariffs Did Trump Announce on Monday?

Major us trading partners and allies, japan and south korea, were slapped with 25% tariffs.

Myanmar and Laos face the highst tariffs at 40%, Cambodia and Thailand 36%, Serbia and Bangladesh 35%, Indonesia 32%, South Africa and Bosnia and Herzegovina and Herzegovina 30%, and Kazakhstan, Malaysia and Tunisia Fac. Tariffs of 25%.

Near-Presidents Letters were sent to all these countries, what the us wants to correct its trade deficit with them (Trade deficit measure the us Imports more from these nations than it exports), and will. Taxes at a new rate.

This tariff is separate from the sectoral tariffs the us has unounced, which taxes on specific sectors such as on automobiles, steel, etc.

The letter also says “Goods Transhamped to Evade A Higher Tariff Will Be Subject to That Higher Tariff”. TRANSHIPMENT GOING THAT COUNTRES FACING HIGHER COURFFS Could Route their goods to the us through a third country facing low tariffs.

The Letter also Also Warns Against Retaliation, Saying, “If any reason you decide your tariffs, then, whatever the number you choose to raise them by, will be added” to the tariff anouncing at present.

However, it leaves open room for negotiations, say, “If you wish you have to open your hertofore closed trading markets to the United States, and eliminate your tariff, and no tariff, polities and trade barriers, wew. Perhaps, consider an adjustment to this letter. “

Why have trump chosen these 14 countries?

After first announcing his dramatic tariffs, trump paused for 90 days and asked counters to strike trade deals with the us in that period. This 90-day deadline is set to expire tomorrow, but only two, sketchy deals have been signed, with the uk and vietnam.

In effect, the latest Announcement pushes the deadline for the negotiations to august 1, while the america’s trading partners by coming good on the threat of slapping respectively.

The us government has not announted why it chose these 14 countries. However, Trump had been criticizing Japan Recently for the slow progress on negotiations. Last week, he had told reporters, “We’eve dealt with japan. Japan – Like India – does not want to open up its Agriculture Sector to American Imports and possess Hurt Hurt Hurt Farmers.

Similary, the deal with south korea too. While these countries are big trading partners for the us, they wanted examptions on specific sectors, such as cars. The us is a big import of automobiles, while the domestic car manfacting Industry to regain its lost dominance.

“AlMost all of Korea’s tariffs are at zero for us imports, leaving them with little to offer the us than or vietnam with high tariffs,” Wendy Cutler, Vice Present of Asia Society Policy Institute and Formr. Negotiator of the south korea-us free trade agreement, said, as quoted by korea times. “This Announcement is a chilling message to others.

Six of the 14 countries (Myanmar, Laos, Indonesia, Cambodia, Malaysia, Thailand) Are members of the group aseanwhich has close ties with china.

Trump has long criticized countries he says has strong protections for their own industries, keeping imports out through high walls of tariffs. He claims these countries “take unfair advantage” of America’s opening to trade and export far more more than they import.

What Next?

It is not clear, because of Trump’s Frequent Flip-slops and because his authority to slap these tariffs in the first place is facing a legal challenge in the us.

Howver, the tariffs are likely to spur other countries to Conclude Deals with the us faster. The countries targetted on monday have also expressed willingness to continue negotiations.

Tariffs are basically taxes a trader has to pay to the country she is exporting to. Most pass on this acting cost to consumers. If all the tariffs go through, American consumers will have to pay a lot more for the several goods that go to the us from other countries. They may not choose not to buy that goods at all, or lesser quantities, leding to losses for the exporters. Countries with export-driven economies, like Bangladesh, will be hit very because of these tariffs, but other nations will feel somese painto.