Last Updated on August 5, 2025
President Donald Trump issued another set of trade letters on Wednesday, expanding his tariff agenda to include new potential duties on countries ranging from the Philippines to Moldova. The letters, which bring the total released this week to 20, propose tariffs between 20% and 30%, set to take effect on August 1.
The six letters released Wednesday outline 30% tariffs for Algeria, Iraq, and Libya; 25% for Brunei and Moldova; and 20% for the Philippines. While the Philippines is the most prominent economy in this latest group, it ranks around 30th among U.S. trading partners by trade volume, according to U.S. government data.
These new announcements largely align with the proposed rates outlined in April, though with some adjustments. For instance, the proposed tariff on the Philippines has increased from 17% to 20%.
This latest round of letters follows a flurry of similar actions earlier in the week, including 14 letters released Monday. The move reflects a more assertive trade posture by the administration, even as comprehensive agreements remain elusive.
Despite the volume of announcements, financial markets have reacted with limited concern. One reason may be the president’s decision to delay the enforcement of “reciprocal” tariff measures by about three weeks through executive action, softening the immediate impact.
“Trade negotiations take time, and the notion of simultaneously negotiating with dozens of countries stretches the bandwidth of any negotiating team,” said Wendy Cutler, a former U.S. trade negotiator and current vice president at the Asia Society, during a Yahoo Finance Live interview on Wednesday. “Even though the president says there will be no further extensions beyond August 1, our trading partners increasingly view this as a longer-term process.”
Also noteworthy was the absence of any progress with key trading partners such as India and the European Union. While a letter to the EU is reportedly in preparation, European Commission President Ursula von der Leyen indicated Wednesday that negotiations were still underway, adding, “We are preparing for all scenarios.”
President Trump stated a second round of letters would be released later Wednesday afternoon.
According to The Wall Street Journal, the delay in the announcement was influenced by Treasury Secretary Scott Bessent, who requested additional time to pursue negotiated agreements behind the scenes.
For now, the overall market response has remained muted. Edward Yardeni, in a note to clients, remarked, “President Donald Trump huffed and puffed again. The financial markets’ reaction was ho-hum.”
Additional skepticism has emerged regarding whether the proposed tariffs will be implemented as stated. On Fox Business, White House trade advisor Peter Navarro noted that markets likely remain stable because they understand that “these are all part of ongoing negotiations.”
What This Means for Your Portfolio
While the latest wave of proposed tariffs signals a more aggressive U.S. trade stance, the immediate impact on personal investment portfolios appears limited—at least for now. Financial markets have reacted calmly, likely due to delays in implementation and the perception that these moves are part of ongoing negotiations rather than finalized policy.
However, for individual investors, there are a few potential implications to keep in mind:
- Global Exposure: If your portfolio includes international stocks or emerging markets—particularly from countries mentioned (like the Philippines)—you could see increased volatility in the short term, especially if tariffs are enforced.
- Sector Sensitivity: Tariff-related uncertainty may affect industries tied to global trade, such as manufacturing, tech, and industrials. Keep an eye on how companies in your portfolio rely on imports or exports.
- Currency Movements: Escalating trade tensions can impact currency values, which may affect international ETFs and mutual funds.
- Market Sentiment: While markets are currently shrugging off these developments, sentiment can shift quickly. Rising geopolitical uncertainty could lead to broader market volatility if negotiations sour.
In short, while the direct exposure may be limited for most portfolios right now, it’s wise to monitor trade headlines and ensure your investments are well-diversified. This environment underscores the importance of balancing risk across regions and sectors—and not overreacting to political noise until policies are finalized.