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 will face. The development comes as a 90-day pause the White House placed on some of its most aggressive import taxes was set to expire this week.
According to BBC, 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 from 1 August. Trump stated that the deals are typically detailed, noting that Vietnam became the second nation after the UK to strike an agreement with the US, though it is more of a "broad framework" rather than a full deal. On Monday, Trump shared letters addressed to leaders of 14 countries on social media, informing them of his latest tariff plans, and noted that the rates could be adjusted "upward or downward, depending on our relationship with your country."
Tariff rates in the letters were similar to those outlined in April when Trump made his "Liberation Day" announcement, threatening new taxes on goods from several countries. The comments suggest Trump may be open to further trade talks, according to investment strategist Vasu Menon from OCBC bank, who noted that the expectations of Trump engaging in a negotiating tactic offer hope to investors. Trump argues that introducing tariffs will protect American businesses and boost domestic manufacturing and jobs. However, economists warn that these measures will raise prices in the US and reduce trade, as evidenced by the slip in the three main share indexes on Monday.
Japan, which sent more than $148 billion in goods to the US last year, making it America's fifth-largest supplier of imports, faces renewed threats. Besides Japan and South Korea, Trump announced plans for a 40% tariff on goods from Myanmar and Laos, a 36% tariff on goods from Thailand and Cambodia, and varying rates on goods from other countries. Japanese Prime Minister Shigeru Ishiba expressed regret over the US government's announcement of further tariff increases and stated that Japan would continue talks to agree on a mutually beneficial deal. South Korea and Thailand are also intensifying negotiations with the US to reach favorable agreements.
White House press secretary Karoline Leavitt mentioned that more letters could follow, disputing the idea that shifting tariff deadlines might weaken Trump's threats. Treasury Secretary Scott Bessent anticipates "a busy couple of days," with new offers and proposals flooding in.
The US has struck agreements with the UK and Vietnam, and a partial deal with China, raising tariffs compared to previous levels, though key issues remain unresolved. A deal with India is reportedly close, while Trump has separately announced tariffs for key sectors, citing national security concerns. Recent threats to the EU and Japan further illustrate the complexity of the ongoing trade negotiations.
