Washington: President Donald Trump has officially postponed the implementation of higher tariffs on US imports, while notifying fourteen nations, including Japan and South Korea, about the specific levies they will encounter.
According to BBC, this decision coincides with the end of a 90-day suspension that the White House had placed on some of its more severe import duties. The president reiterated the potential for a 25% tariff on goods entering the United States from Japan and South Korea, and issued numerous other letters to global leaders warning of tariffs effective from August 1.
The tariff plans, outlined in letters shared on social media by Trump, indicate that the rates might be adjusted “upward or downward” based on the bilateral relationship with each country. Most of the proposed rates mirror those detailed in his April “Liberation Day” announcement, which threatened new taxes on imports from selected countries.
Investment strategist Vasu Menon from OCBC bank noted that Trump’s comments suggest he might be open to further trade negotiations, rather than making definitive tariff threats. Trump maintains that these tariffs aim to safeguard American businesses from international competition and bolster domestic manufacturing and employment. However, economists warn that such measures may lead to increased prices in the US and a decrease in trade.
Japan, a major supplier of imports to the US, sent over $148 billion in goods last year. South Korea is also among the top ten suppliers. Besides these two nations, Trump announced plans for tariffs ranging from 25% to 40% on goods from several other countries, including Myanmar, Laos, Thailand, Cambodia, Serbia, Bangladesh, Indonesia, South Africa, Malaysia, and Tunisia.
In response, Japanese Prime Minister Shigeru Ishiba expressed intent to continue talks with the US, despite his regret over the increased tariffs. South Korea plans to use the extended deadline to intensify negotiations, while Thailand’s finance minister remains optimistic about reaching a favorable agreement.
White House press secretary Karoline Leavitt mentioned that additional letters might be issued shortly, dismissing concerns that shifting deadlines from July 9 to August 1 could weaken the impact of Trump’s tariff threats.
Treasury Secretary Scott Bessent anticipates intense negotiations in the coming days, as numerous new proposals have emerged. Trump initially described the April tariffs as “reciprocal” measures to counteract what he perceives as unfair international trade rules affecting US exports.
The complexity of these multi-layered trade policies, particularly concerning car tariffs, continues to challenge negotiations with Japan and South Korea. The US has reached agreements with the UK, Vietnam, and a partial deal with China, but key issues remain unresolved, and an agreement with India is reportedly close.
