Washington: President Donald Trump has officially delayed the imposition of higher tariffs on US imports while sending letters to 14 countries, including Japan and South Korea, detailing the levies they face.
According to BBC, the latest development comes as a 90-day pause that the White House placed on some of its most aggressive import taxes was set to expire this week. The president renewed his threat of a 25% tax on products entering the country from Japan and South Korea and shared a batch of other letters to world leaders warning of levies effective from 1 August.
On Monday, Trump shared letters addressed to leaders of 14 countries on social media, informing them of his latest tariff plans, while adding that the rates could be modified “upward or downward, depending on our relationship with your country.” Most of the tariff rates in the letters were similar to those outlined in April when he made his “Liberation Day” announcement, threatening a wave of new taxes on goods from various countries.
Investment strategist Vasu Menon from OCBC bank commented, “The expectations that Trump is once again engaged in a negotiating tactic, rather than making serious tariff threats, offer hope to investors.” Trump argues that introducing tariffs will protect American businesses from foreign competition and also boost domestic manufacturing and jobs. However, economists say the measures will raise prices in the US and reduce trade.
Besides South Korea and Japan, Trump set out plans for a 40% tariff on goods from Myanmar and Laos, a 36% tariff on goods from Thailand and Cambodia, a 35% tariff on goods from Serbia and Bangladesh, a 32% tariff on Indonesia, a 30% tariff on goods from South Africa, and a 25% tariff on goods from Malaysia and Tunisia.
Japanese Prime Minister Shigeru Ishiba stated that his government would continue talks with the US to agree on a deal that benefits both countries. South Korea also plans to use the deadline extension to intensify talks with the US, while Thailand’s finance minister expressed confidence in reaching an agreement for a tariff rate similar to those imposed on other countries.
White House press secretary Karoline Leavitt mentioned that more letters could follow in the days ahead. She disputed the suggestion that the shifting tariff deadlines might reduce the power of Trump’s threats.
Treasury Secretary Scott Bessent anticipated “a busy couple of days” with a surge in new offers and proposals. Trump had initially described his April tariffs as “reciprocal,” claiming they were required to counteract other countries’ trade rules deemed unfair to US exports. The US has struck agreements with the UK and Vietnam, as well as a partial deal with China, though key issues remain unresolved. A deal with India is reportedly close.
The multi-layered policies have complicated trade talks, with car tariffs a key sticking point in negotiations with Japan and South Korea. Trump has separately announced tariffs for key sectors, citing national security concerns, and threatened to raise levies on other items, further complicating international trade relations.