President Donald Trump on Monday threatened tariffs from 25% to 40% on all goods from seven countries, including major U.S. trade partners Japan and South Korea.
The tariffs would go into effect Aug. 1, rather than Wednesday, which was the deadline Trump already extended once from an initial April date, Trump wrote in a series of letters to the countries’ leaders that he posted on his social media platform.
Countries that will see 25% tariffs are Japan, South Korea, Malaysia and Kazakhstan, with South Africa subject to a 30% rate and Laos and Myanmar seeing a 40% tariff rate.
The letters are nearly identical and begin by acknowledging the United States faces a trade deficit with the other country.
“Nevertheless, we have decided to move forward with you, but only with more balanced, and fair, TRADE,” Trump wrote in the letters. “We have had years to discuss our Trading Relationship with (your country), and have concluded that we must move away from these longterm, and very persistent, Trade Deficits.”
The economy-wide tariffs would apply above any sector-specific levies, Trump wrote.
The administration would respond to any effort by the other country to place a reciprocal tariff on the U.S. by setting a new tariff rate on that country that equaled whatever rate it set, plus 25%, Trump said.
Letters on the way
White House press secretary Karoline Leavitt said Monday about 14 countries would receive similar letters.
“These new rates that will be provided in this correspondence to these foreign leaders will be going out the door within the next month, or deals will be made,” Leavitt said. “Those countries continue to negotiate with the United States. 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.”
The administration has used tariffs aggressively to reset trade relationships with every partner. The new threats are part of a push to reach trade deals with individual countries.
Trump set a goal of reaching 90 deals within 90 days of his April 2 announcement, but only two — Vietnam and the U.K. — had materialized by that deadline.
Trump will also sign an executive order further extending to Aug. 1 the deadline for tariffs on every country without a one-to-one trade agreement with the U.S., Leavitt said.
Trump shook the global economy when he imposed wide-reaching levies on nearly every country on April 2. The president walked them back just seven days later, announcing a 90-day pause on staggering tariffs that reached nearly 50% on some major U.S. trading partners and, briefly, 125% on Chinese imports.
The U.S. Court of International Trade struck down Trump’s emergency tariffs May 28. The following day, an appeals court temporarily restored the tariffs and as of Monday they remain in place while the court case is being heard.
Shauneen Miranda contributed to this report.
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