Trump extends tariff deadline; announces new rates for 14 countries
What's the story
United States President Donald Trump has delayed imposing higher tariffs on US imports while announcing new rates for 14 countries, including Japan and South Korea. The new tariffs will take effect from August 1; the previous deadline was July 9. The announcement was made through letters posted on Truth Social, addressed to the leaders of the affected nations. Trump, however, was not definitive when asked if the August 1 deadline was "firm."
Trump
'Not 100% firm'
"I would say firm, but not 100% firm. If they call up and they say would like to do something a different way, we're going to be open to that," he told reporters. The first receivers of Trump's letters were Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung. Both countries announced on Tuesday that they intend to continue talks with the US, with Japan stating that it is working on a trade agreement.
Retaliation warning
Trump warns countries against retaliating with their own import taxes
In his letters, Trump warned the countries against retaliating with their own import taxes. He wrote, "If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by will be added onto the 25% that we charge." This move is part of Trump's strategy to bring back domestic manufacturing and fund recent tax cuts. White House Press Secretary Karoline Leavitt described the tariffs as "tailor-made trade plans for...every country on this planet."
Tariff details
New tariffs on autos, steel and aluminum imports
The new tariff rates will also apply to imports from Myanmar and Laos (40%), Cambodia and Thailand (36%), Serbia and Bangladesh (35%), Indonesia (32%), South Africa and Bosnia & Herzegovina (30%) and Kazakhstan, Malaysia, Tunisia (25%). Autos will be taxed separately at a standard 25% worldwide, while steel and aluminum imports will be taxed at 50%.
Additional tariffs
Countries aligned with BRICS will face additional tariffs
Trump has also indicated that countries aligned with the policy goals of BRICS (Brazil, Russia, India, China, and South Africa) will be subjected to additional tariffs of 10%. This is not the first time Trump has clashed with Japan and South Korea over trade. The new tariffs indicate that past deals from his first term did not fulfill the expectations set by his administration.