The High Stakes of Trump's August 1 Tariff Deadline

In a dramatic escalation of trade tensions, U.S. President Donald Trump announced a significant hike in tariffs, applying a 25% levy on imports from 14 countries, including economic powerhouses Japan and South Korea. The move rattled Wall Street, with the S&P 500 taking a sharp hit.

Letters sent to affected nations hinted at opportunities for negotiation, but with a stern warning of reciprocal action should they retaliate. Former U.S. trade negotiator Wendy Cutler described the situation as disappointing but not devoid of hope for a resolution.

As negotiations unfold ahead of the August 1 deadline, countries are under pressure to reach agreements with the U.S. While the impact of these tariffs is already being felt in global markets, some nations remain optimistic about negotiating reduced tariffs or exemptions.

(With inputs from agencies.)