US President Donald Trump has threatened higher tariffs on over a dozen countries, including Japan and South Korea. Photo / Getty Images
US President Donald Trump has threatened higher tariffs on over a dozen countries, including Japan and South Korea. Photo / Getty Images
US President Donald Trump reignited his trade war by threatening more than a dozen countries with higher tariffs today – but then said he may be flexible on his new August deadline to reach deals.
Trump sent letters to trading partners including key US allies Japan and South Korea, announcingthat duties he had suspended in April would snap back even more steeply in three weeks.
Tokyo and Seoul would be hit with 25% tariffs on their goods, he wrote. Countries including Indonesia, Bangladesh, Thailand, South Africa and Malaysia were slapped with duties ranging from 25% to 40%.
However, in a move that will cause fresh uncertainty in a global economy already unsettled by his tariffs, the 79-year-old once again left the countries room to negotiate a deal.
“I would say firm, but not 100% firm,” Trump told reporters at a dinner with visiting Israeli Prime Minister Benjamin Netanyahu when asked if the August 1 deadline was firm.
Pressed on whether the letters were his final offer, Trump replied: “I would say final – but if they call with a different offer, and I like it, then we’ll do it.”
The US President had unveiled sweeping tariffs on imports on what he called “Liberation Day” on April 2, including a baseline 10% tariff on all countries.
However, he quickly suspended all tariffs above 10% for 90 days after turmoil in the markets.
They were due to kick back in on Thirsday and Trump sent the letters in advance of that deadline.
Trump’s near-identically worded letters to Japanese and South Korean leaders said he would impose 25% tariffs as their trading relationships with Washington were “unfortunately, far from Reciprocal”.
He warned of further escalation if there was retaliation against the levies.
President Trump left room for negotiation, saying the August 1 deadline for deals was "firm, but not 100% firm". Photo / Getty Images
But Trump today also signed an order formally extending the Wednesday deadline, postponing it to August 1.
The new August date effectively marks a further delay – and Trump’s latest comments threaten to compound the uncertainty over when the deadline really is.
According to letters posted to Trump’s Truth Social platform, products from Indonesia will face a 32% tariff, while the level for Bangladesh is 35% and Thailand 36%.
Most countries receiving letters so far had duties similar or unchanged from rates threatened in April, although some like Laos and Cambodia had notably lower levels.
The Trump administration is under pressure to show results after promising “90 deals in 90 days”.
So far only two firm deals have emerged, with Britain and Vietnam, plus an agreement to dial back super-high tit-for-tat tariffs with China.
Japan’s Prime Minister Shigeru Ishiba said at a Cabinet meeting today that the announcement of the 25% tariffs is “genuinely regrettable”, local media reported.
Meanwhile, South Korea’s National Security Adviser Wi Sung-lac met with his US counterpart Marco Rubio in Washington, expressing hope a bilateral summit could soon be held to achieve “mutually beneficial outcomes across key pending issues”.
Asked why Trump opted to start with Japan and South Korea, White House Press Secretary Karoline Leavitt said: “It’s the President’s prerogative, and those are the countries he chose.”
Thailand’s Acting Prime Minister Phumtham Wechayachai today said he wanted a “better deal” than the 36% tariff Trump threatened to impose, adding: “The most important thing is that we maintain good relations with the US.”
Malaysia said it was “committed to continuing engagement with the US towards a balanced, mutually beneficial, and comprehensive trade agreement,” its trade ministry said in a statement, after Washington imposed a 25% tariff on the Southeast Asian nation.
Major US stock indexes fell, with the Nasdaq down 0.9% and the S&P 500 losing 0.8%. Photo / Getty Images
US Treasury Secretary Scott Bessent today said that there would be more deals coming up: “We are going to have several announcements in the next 48 hours.”
Major US stock indexes fell from records today on Trump’s fresh threats. The Nasdaq tumbled 0.9% and the S&P 500 lost 0.8%.
Trump has also threatened an extra 10% tariff on countries aligning themselves with the emerging Brics nations, accusing them of “anti-American policies” after they slammed his duties at a summit.
But partners are still rushing to avert Trump’s tariffs altogether.
The European Commission said EU chief Ursula von der Leyen had a “good exchange” with Trump on trade when the pair spoke on Monday.
