Key points
- Trump sends tariff letters to 14 countries
- Renews threat of 25pc tax on products from Japan and South Korea
- Trump says he may be flexible on his new August deadline to reach deals
ISLAMABAD: US President Donald Trump has delayed imposing higher tariffs on US imports, while sending letters to 14 countries, including Japan and South Korea, detailing the levies they face.
The latest 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 the BBC, the president renewed his threat of a 25 per cent 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 reignited his trade war by threatening more than a dozen countries with higher tariffs Monday but then said he may be flexible on his new August deadline to reach deals.
Fresh uncertainty
Tokyo and Seoul would be hit with 25 per cent tariffs on their goods, he wrote.
Countries, including Indonesia, Bangladesh, Thailand, South Africa, and Malaysia, were slapped with duties ranging from 25 per cent to 40 per cent.
But 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 per cent firm,” Trump told reporters at a dinner with visiting Israeli Prime Minister Benjamin Netanyahu when asked if 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.”
Sweeping tariffs
The US president unveiled sweeping tariffs on imports on what he called “Liberation Day” on April 2, including a baseline 10 per cent tariff on all countries.
However, he quickly suspended all tariffs above 10 per cent for 90 days following market turmoil, according to AFP.
They were due to kick back in on Wednesday 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 per cent tariffs as their trading relationships with Washington were “unfortunately, far from Reciprocal.”
He warned of further escalation if there was retaliation against the levies.
But Trump on Monday also signed an order formally extending the Wednesday deadline, postponing it to August 1.
“President’s prerogative”
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 per cent tariff, while the level for Bangladesh is 35 per cent and Thailand, 36 per cent.
Most countries receiving letters so far had duties similar or unchanged from rates threatened in April, although some like Laos and Cambodia saw notably lower levels.
The Trump administration is under pressure to show results after promising “90 deals in 90 days.”
