US announces reciprocal tariffs of 25-40%; to come into force from Aug 1

The letter says the tariff rates are “still far less than what is needed to eliminate the trade deficit with these nations.”

“Our relationship has been, unfortunately, far from reciprocal. Starting on August 1, 2025, we will charge Japan a tariff of only 25% on any and all Japanese products sent into the United States, separate from all sectoral tariffs,” says the letter addressed to the Japanese prime minister.

The letter further warns that goods transshipped to evade a higher tariff will still be subject to that higher rate. However, it also states that there will be no tariff if a country, or companies within it, choose to build or manufacture products within the US. The Trump administration has promised to do everything possible to ensure approvals are granted “quickly, professionally, and routinely in a matter of weeks.”

President Trump had earlier hinted that letters informing the imposition of reciprocal tariffs have been drafted for 12 countries.

Meanwhile, India has been actively engaged in discussions with the Trump administration to finalize a ‘limited’ trade deal with the US in an effort to avoid the imposition of a 26% reciprocal tariff. India is hoping to finalise the deal before the expiry of 9^th July deadline.