JULY 8 – The US plans to impose a 25% tax on products entering the country from South Korea and Japan on 1 August, President Donald Trump has said.
He announced the tariffs in a post on social media, sharing letters he said had been sent to leaders of the two countries.
The White House has said it expects to send similar messages to many other countries as the 90-day pause it placed on some of its most aggressive tariffs is set to expire.
The first two letters suggest that Trump remains committed to his initial push for tariffs, with little change from the rates announced in April.
At that time, he said he was looking to hit goods from Japan with duties of 24% and charge a 25% on products made in South Korea.
Those tariffs were included in a bigger “Liberation Day” announcement, which imposed new taxes on goods from countries around the world – with goods from some countries facing levies of more than 40%.
After outcry and turmoil on financial markets following the initial tariffs announcement, Trump suspended some of the highest import taxes to allow for talks, while keeping in place a 10% levy.
The window for negotiations to avoid the higher duties is set to expire on 9 July. Trump has said he plans to start charging tariffs on 1 August, extending that deadline.
On Monday, Treasury Secretary Scott Bessent said he expected “a busy couple of days”.
“We’ve had a lot of people change their tune in terms of negotiations. So my mailbox was full last night with a lot of new offers, a lot of new proposals,” he told US business broadcaster CNBC.
Trump had initially described his April tariffs as “reciprocal”, claiming they were required to fight back against other countries trade rules he saw as unfair to US exports.
He has separately announced tariffs for key sectors, such as steel and cars, citing national security concerns, and threatened them for other areas, such as pharmaceuticals and lumber.
The multi-layered policies have complicated trade talks, with car tariffs a key sticking point in negotiations with Japan and South Korea.
So far, the US has struck agreements with the UK and Vietnam, as well as a partial deal with China. In all three of those cases, the agreements have raised tariffs, while key issues remain unresolved.
The European Union (EU) is also reportedly in talks that would keep a provisional 10% tax in place for most goods shipped to the US beyond the deadline.
But it is also looking to reduce Trump’s 25% tariff on cars and parts, and a 50% tax on steel and aluminium.
On Monday, a spokesperson said that the European Commission’s president Ursula von der Leyen had a “good exchange” with Trump. Just a few weeks ago, the US president had threatened the EU with a 50% tax unless it reached an agreement.
Last week, Trump said Japan could face a “30% or 35%” tariff if the country failed to reach a deal with the US by Wednesday.
By BBC
