Trump says 25% tariffs to be slapped on Japan, South Korea on Aug. 1
In nearly identical letters addressed to the leaders of Japan and South Korea, which Trump posted in full on his Truth Social platform, he told each of them that trade relations have been "far from Reciprocal."
"Please understand that the 25% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country," Trump wrote to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae Myung.
Trump also warned each country that any increases in their tariffs on U.S. goods will be met with an equivalent hike by his administration, above and beyond the 25 percent rate.
At the same time, Trump said he may consider making "an adjustment" if the countries reduce what he described as their trade barriers.
"These Tariffs may be modified, upward or downward, depending on our relationship with your Country," he said.
Under Trump's so-called reciprocal "Liberation Day" tariffs, the administration has also levied a baseline, or universal, duty of 10 percent covering imports from almost all countries in the world.
Until now, Japan was facing an additional tariff of 14 percent, for a total rate of 24 percent. South Korea's was 25 percent.
Trump said the updated rates are completely separate from the higher industrial-sector tariffs that have already taken effect, such as those targeting all imports of cars, auto parts and steel.
The signed letters were posted two days before a 90-day pause on country-specific tariffs was due to expire and despite weeks of bilateral negotiations between the administration and each of the Asian allies.
Both Japan and South Korea have been dealt a severe economic blow by Trump's hike in April of a tariff on imported passenger vehicles to 27.5 percent from 2.5 percent.
Trump has upped the pressure on Japan in recent weeks, venting frustration that it does not import significant amounts of American cars and rice.
With the U.S. leader showing no signs of granting Tokyo's persistent requests to remove the auto and other tariffs, the new 25 percent rate has created another headache for Japanese officials trying to break the deadlock in negotiations with Washington.
Trump later posted on social media similar trade letters to the leaders of Bangladesh, Bosnia and Herzegovina, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Kazakhstan, Serbia, South Africa, Thailand and Tunisia, notifying them of tariff rates from 25 percent to 40 percent.
Of those countries, the administration substantially lowered the rates for Bosnia and Herzegovina, Cambodia, Laos, and Myanmar -- from 35 to 30 percent, 49 to 36 percent, 48 to 40 percent, and 44 to 40 percent, respectively.
On Monday, Trump signed an executive order extending the pause until Aug. 1, meaning that country-specific tariffs would not go into effect before then and that dealmaking could continue.
Asked why the deadline had been postponed, White House spokeswoman Karoline Leavitt said, "We've seen a lot of positive developments in the right direction, but the administration, the president and his trade team want to cut the best deals for the American people and the American worker."
U.S. officials, however, did not explain why some tariff rates changed or remained unaffected.
Trump unveiled sweeping country-specific tariffs on April 2, targeting about 60 countries with which the United States runs trade deficits, before pausing them for 90 days to provide time for talks, mainly with its major trading partners.
Although top U.S. trade officials had said they could clinch 90 trade deals in 90 days, only two agreements -- with Britain and Vietnam -- have been sealed so far.
U.S. Treasury Secretary Scott Bessent said Monday in a CNBC interview that the administration is set to announce "several" trade deals over the next 48 hours, without naming any countries or offering other details.
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