Trump says new tariff deadline 'not 100 per cent firm'
Trump sent letters to trading partners including key US allies Japan and South Korea, announcing that duties he had suspended in April would snap back even more steeply in three weeks.
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 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 per cent tariff on all countries.
But he quickly suspended all tariffs above 10 per cent for 90 days following turmoil in the markets.
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.
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."
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 Sunday that he "won't easily compromise" in trade talks with Washington.
Asked why Trump opted to start with Japan and South Korea, Leavitt said: "It's the President's prerogative, and those are the countries he chose."
"This announcement will send a chilling message to others," said Asia Society Policy Institute Vice President Wendy Cutler, referring to Trump's initial letters to Tokyo and Seoul.
"Both have been close partners on economic security matters," she said, adding that companies from Japan and South Korea have made "significant manufacturing investments in the US in recent years."
US Treasury Secretary Scott Bessent said Monday 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 Monday on Trump's fresh threats. The Nasdaq tumbled 0.9 per cent and the S&P 500 lost 0.8 per cent.
Trump has also threatened an extra 10 per cent 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 Sunday.
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Malaysian Reserve
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Worth bending knees to 'emperor' Trump?
YOURSAY | 'Nearly every country has been threatened by him.' Trump sends letter to PM, Agong, imposes 25pct tariff on all M'sian products Milshah: First of all, this policy has not been implemented yet. It is a tactic to force countries to make deals with the United States until the new Aug 1 deadline is reached. Whether it will be implemented or not is another story. With US President Donald Trump, things change like changing people, and changing clothes. There is no certainty. Remember, those deals cost an arm and a leg for the countries involved. Trump wants full access to the countries' market, while at the same time, not allowing countries access to the US market. Is it worth it? Is it worth bending the knee to 'Emperor' Trump? Typical bullying tactic. On top of that, if countries were to increase their own tariffs, the US tariffs would go even higher. It goes back to the basic question: does the US need the countries more than the countries need the US? How should Malaysia respond? I am not in favour of Malaysia increasing tariffs on its own. Any increase will affect our imports; they will be more expensive. This will hit the rakyat who are already burdened with the high cost of living. However, I am in favour of 'Buy US last'. Malaysia should as much as possible reduce or not buy from US companies. Government procurements, such as military aircraft and equipment, should put US companies last. This should be the unwritten rule. The issue now is Malaysia's exports and not Malaysia's imports. Malaysia simply needs to increase their exports to other countries. More can be done through China, Japan, South Korea, Asean, Brics, the EU, the Middle East nations, Africa, and so on. We have to accept the fact that the US is now an expensive country to trade with. We must stop being addicted to the US market and go for greater cooperation with other countries. OrangeMouse9413: Do you think Trump cares about anything we have to do or say, save for caving in and bending our knees like a colonised country to the coloniser? Perhaps the majority of Malaysiakini commenters need to get their heads out of the usual standard 'condemn Malaysia' mentality and see that nearly every country in the world has been threatened by Trump. But if you want to continue viewing the issue myopically, then please do not let me stop you from your enjoyment. GrayEagle1207: If only current and past Malaysian governments had focused on developing the local economy, education, and medical care, and training high-skilled workers. If only we instilled fair trade policies, increased equal opportunities for the local populace, curbed wasteful spending, reduced the cabinet size, curbed corruption, nepotism, and cronyism, and wasteful government offices. If we do all that, I am pretty sure Malaysia will be a viable trade partner and will have the skills to negotiate better. As of now, Malaysian politicians, government officials, and influential persons in politics have stolen billions in taxpayer funds for self interest, spent taxpayer monies on failed military equipment, projects, taxing the people even more, justifying wasteful spending, spending time and resources on foreign disputes, sidelining local talents, the list goes on. America, China, and the Middle East countries may be bullies on a global scale, but Malaysia is bullying its own people. Oct: Prime Minister Anwar Ibrahim is useless in getting any reduction after all the self-trumpeting that Malaysia had two rounds of trade negotiation in the US, with our Malaysian delegation contingent comprising the Investment, Trade, and Industry Minister Tengku Zafrul Abdul Aziz and senior officers. They were a waste of money and resources, as the result shows Malaysia is worse off than the initial proposal. In short, it was a holiday trip for the delegation. By right, Anwar should have called Trump directly to negotiate with him via the phone. Unfortunately, nobody in the US government wants to talk to him. This is a high-profile incident as the tariff affects Malaysian products exported to the US. When Malaysia needs Anwar to resolve national interests, he is not around. Anwar prefers to jet around to give lectures, show solidarity with a foreign country, and wants the limelight for fame and glory at the expense of Malaysia's trade and economy. Just look at the Vietnam PM who called up Trump and managed to get a big reduction in tariffs without even having to send a delegation to the US. This is what a good statesperson who loves their country is made of. Anwar is a big disappointment to Malaysia in managing international matters, as it seems nobody listens to rhetorical support for a foreign country. Where in the world does one see a PM who keeps shouting about a foreign crisis when Anwar cannot resolve any of his country's crises? Time to get Anwar out. US tariffs: Opposition hits out, jibes minister's White House run TheAxman: This is nothing but Trump's chaotic management. He was under pressure to do 90 deals in 90 days, but as he ran out of time, he simply decided to copy and paste a number of letters to a number of countries, thus resulting in an arbitrary 25 percent. One can say that Zafrul was ineffective. I just saw it all as a futile exercise in the first place, as Trump's deadline was ridiculous and he was always going to be unpredictable. GanMu: Why should the president of the US meet or entertain the Malaysian delegation when it was headed by a minister? The PM should have been the one to lead the delegation as head of the government. Unfortunately for Malaysia, he is far too busy gallivanting all over the world promoting his religion and visiting mosques under the guise of bringing in investments. Why did he not meet Trump when the Singapore PM met him? He owes us an answer. Our PM's shortcomings have become good brownie points for the opposition. Pink: Zafrul's lackadaisical attitude in the negotiation process is disappointing. All we got from the negotiation is to pay an extra one percent tariff after paying expensive flight and hotel bills for his large entourage. It reminds me of my silly classmate who went to see my maths teacher for an extra mark in a test, but got his mark reduced instead. The above is a selection of comments posted by Malaysiakini subscribers. Only paying subscribers can post comments. In the past year, Malaysiakinians have posted over 100,000 comments. Join the Malaysiakini community and help set the news agenda. Subscribe now. These comments are compiled to reflect the views of Malaysiakini subscribers on matters of public interest. Malaysiakini does not intend to represent these views as fact.
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22 minutes ago
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US president Donald Trump has told Prime Minister Anwar Ibrahim that the 25% tariff announced on Malaysian imports on Monday was necessary to correct the 'unsustainable' trade deficit the US has with Malaysia. (AP pic) PETALING JAYA : A former US trade negotiator has called on Malaysia to modify its strategy in light of Washington's decision to impose a 25% tariff on imports from the country from Aug 1. This was up from the 24% tariff that the US had originally proposed to levy on certain exports from Malaysia, but it was paused for 90 days to enable negotiations to proceed. The pause ended yesterday. Stephen Olson, who represented the US in negotiations for two free trade agreements, said that while it would be premature to conclude that Malaysian negotiators have failed, it was a 'safe bet' that the concessions Malaysia has offered so far have been insufficient. 'This is a high-profile intermediary milestone, but don't draw any conclusions until the game is over,' he said. 'There are several weeks of negotiating left, and a further extension is always possible after that. 'Malaysia should review its positions and the specific complaints raised by the US, but beyond a certain point, additional concessions are not worth the deal. Judging exactly where the red line lies is always difficult,' he added. US President Donald Trump, who wrote to multiple heads of state to alert them to the tariff rates their countries will face next month if no deals are reached, told Prime Minister Anwar Ibrahim that the 25% tariff was necessary to correct the 'unsustainable' trade deficit the US has with Malaysia. Trump said the deficit, which he has described as a 'major threat' to the US economy and national security, was due to Malaysia's long-standing tariff and non-tariff barriers. The Office of the US Trade Representative (USTR) previously identified Malaysia's strict rules on halal imports and Bumiputera equity requirements as barriers which contributed to the 24% tariff initially imposed on April 2. In its 2025 National Trade Estimate (NTE) Report on Foreign Trade Barriers, the USTR said Malaysia's halal standards exceed international norms, requiring dedicated halal-only facilities and complex registration processes, which increase costs and delay exports. The report also flagged investment barriers, particularly the requirement for 30% Bumiputera ownership in foreign-owned firms and restrictions in sectors such as oil and gas, media, and public procurement. During a special parliamentary meeting in May, Anwar reaffirmed that core national policies — including the Bumiputera policy, local vendor requirements, and protections for strategic sectors — would remain unchanged in US tariff talks. Economist Geoffrey Williams proposed a pragmatic easing of restrictions, stating this may not necessarily shift demand away from local products. He also noted that public sentiment toward US companies in Malaysia has been affected by their reported business ties with Israel. 'Malaysia could simply remove tariffs and non-tariff barriers across the board and leave the choice to consumers and businesses. 'Even without tariffs, US products are not priced competitively in Malaysia, so it should not be presumed that removing tariffs will flood Malaysia with US products,' Williams added.
