- U.S. to raise tariffs on imports from 14 nations starting Aug 1.
- Japan, South Korea, and others urged to finalize trade deals.
- Some allies call tariffs unfair; negotiations are still underway.
U.S. President Donald Trump on Monday started informing trade partners—from major suppliers such as Japan and South Korea to smaller nations—that significant increases in U.S. tariffs will begin on August 1, indicating a new stage in the trade conflict he initiated earlier this year.
Fourteen nations have submitted letters, including smaller U.S. exporters such as Serbia, Thailand, and Tunisia, indicating potential for further negotiations while also cautioning that any retaliatory actions would trigger a similar reaction.
"If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge," Trump said in letters, released on his Truth Social platform, to Japan and South Korea.
The increased tariffs imposed on U.S. importers of international products begin on August 1 and will specifically not be added to previously declared sector tariffs such as for automobiles, steel, and aluminum.
This implies, for example, that Japanese vehicle tariffs will stay at 25%, instead of the current 25% auto sector tariff increasing to 50% under the new reciprocal rate, as has happened with some of Trump's tariffs.
The deadline is approaching for nations to strike agreements with the U.S. following Trump's initiation of a worldwide trade conflict in April, which has unsettled financial markets and prompted officials to rush to safeguard their economies.
Trading partners received additional relief as Trump signed an executive order on Monday, pushing the Wednesday deadline for talks to August 1. Trump has left much of the world uncertain about the results of extended negotiations with nations seeking to evade the significant tariff increases he has warned about.
The rate for South Korea remains unchanged from Trump’s initial announcement, whereas the rate for Japan is 1 point above what was stated on April 2. A week later, he set all the so-called reciprocal tariffs at a maximum of 10% until Wednesday. To date, only two agreements have been established, involving Britain and Vietnam.
Also Read: Trump Announces US-Vietnam Trade Deal With 20% Import Tariff
Wendy Cutler, vice president of the Asia Society Policy Institute, expressed regret that Trump was increasing tariffs on imports from two of America's closest allies, but noted there was still an opportunity for a breakthrough in the negotiations.
Trump stated that the U.S. would levy 25% tariffs on products from Tunisia, Malaysia, and Kazakhstan; 30% on South Africa and Bosnia and Herzegovina; 32% on Indonesia; 35% on Serbia and Bangladesh; 36% on Cambodia and Thailand; and 40% on Laos and Myanmar. South Korea announced its intention to ramp up U.S. trade discussions and views Trump's proposal for a 25% tariff starting August 1 as essentially prolonging a grace period for enacting reciprocal tariffs.
"We will step up negotiations during the remaining period to reach a mutually beneficial result to quickly resolve the uncertainties from tariffs," the country's Industry Ministry said.
South African President Cyril Ramaphosa stated that the 30% tariff rate from the U.S. is unfair since 77% of U.S. products enter South Africa duty-free. Ramaphosa's representative stated that his administration would keep interacting with the U.S.