Name: WSJ Senior Reporter Explains Trump's Hardball Tariff Negotiations
Uploaded: 2025-07-08T12:15:00Z
Duration: 3 min 42 s
Description: As President Trump delays his trade deadline and threatens countries with up to 40% tariffs, WSJ Senior Reporter Jon Emont looks at the impact on companies in Asia and the wider world economy.

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As President Trump delays his trade deadline and threatens countries with up to 40% tariffs, WSJ Senior Reporter Jon Emont looks at the impact on companies in Asia and the wider world economy. Photo: WSJ; Athit Perawongmetha/Reuters

https://m.wsj.net/video/20250708/fbbdeea3-3272-49f4-9c29-f339ed150057/2/hls/manifest-hd-wifi.m3u8

As President Trump delays his trade deadline and threatens countries with up to 40% tariffs, WSJ Senior Reporter Jon Emont looks at the impact on companies in Asia and the wider world economy.

WSJ Senior Reporter Explains Trump's Hardball Tariff Negotiations

Three months after Donald Trump announced so-called reciprocal tariffs on nearly every country in the world, threatening to dramatically raise tariff rates if negotiations weren't successful, he's come back with about two dozen letters that he's posted on social media in typical Trumpian fashion, reiterating that he will essentially impose more or less the same rates that he established in April if negotiations aren't successful over the next couple of weeks. Today offers a reprieve to Asian exporters because they've received a couple more weeks to continue negotiating with Trump before the tariffs go into effect. But on the other hand, this reignites the trade war in a very potentially devastating way for a lot of economies in the region that rely quite heavily on exporting to the United States.

Others we met with, and we don't think we're gonna be able to make a deal, so we just send them a letter. If you wanna play ball, this is what you have to pay.

Two very important United States trading partners, Japan and South Korea, were informed that starting August 1st, goods that they exported to the United States would have a tariff rate of 25%, which is quite high. And then a range of other economies that are also quite important. Thailand, South Africa, Indonesia, Bangladesh also received letters. The letters were all quite similar in tone and wording. There was a range, typically in about the 25% to 40% range in Asia, where countries learned that essentially starting August 1st, if nothing changes, they're gonna have to pay very hefty tariffs.

I'm saying here it is, congratulations. Welcome to the United States. I hope you make a lot of money and you're gonna pay us money.

I've spoken to business leaders in the region, and they're of two minds. So some of them are taking this very seriously and are extremely worried that the power threats that were laid out in the letters are going to be imposed. One Bangladeshi garment exporter told me that she was feeling shattered, that 35% tariffs that are threatened of Bangladesh, that would be really tough for her business. And others think this is just sort of a ploy and a gambit by Trump to extract greater concessions in the weeks ahead. And we shouldn't take it too seriously, and we should just take a big deep breath.

We've seen a lot of positive developments in the right direction, but the administration, the president and his trade team want to cut the best deals for the American people and the American worker.

For somebody shopping at Walmart or going online and buying goods on Amazon, if these tariff rates stay high on nearly every country that makes things for the United States, it's pretty impossible to imagine anything other than prices going up pretty substantially. It hasn't really showed up in the data yet, but some of the tariffs haven't really come into effect yet. If things stay the way they've been laid out today, it would weigh on consumer's wallets. No question. What this could do is this could end up reducing trade, you know, making goods more expensive, making Americans think a lot harder about purchasing decisions than what they decide to buy. And therefore, it could have devastating effects on Asian economies and certainly impact how rich Americans feel. Of course, there's also the possibility that, you know, some negotiations are successful over the coming weeks and that the tariff rates are dropped and that, you know, nothing really changes. I suppose that there's a range of possibilities.

Video from around the world on the latest news developments, with insight from Wall Street Journal editors and reporters. 

WSJ Senior Reporter Explains Trump's Hardball Tariff Negotiations

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