U.S. President Donald Trump announced a new wave of higher tariffs targeting Japan, South Korea, and a dozen other countries on Monday, intensifying pressure for trade concessions. However, the implementation of these increased duties has been delayed until August 1, granting more time for negotiations.
The proposed tariff hikes range from 25% to 40%, significantly up from the 10% levy previously imposed on nearly all U.S. trading partners. Affected countries include Indonesia (32%), Bangladesh (35%), Thailand (36%), South Africa, and Malaysia, among others. Some nations such as Laos and Cambodia are reportedly subject to lower duties.
In formal letters addressed to leaders of Japan and South Korea, Trump criticized the lack of reciprocity in trade relations, warning of further escalation if any retaliatory measures are taken. However, he indicated potential flexibility, stating that the U.S. may “consider an adjustment” should partners revise their trade policies.
Japan’s Prime Minister Shigeru Ishiba responded firmly, saying he “won’t easily compromise” in ongoing trade discussions with Washington.
The announcement comes amid ongoing market volatility. The S&P 500 dropped 0.8%, while the Nasdaq fell 0.9% following Trump’s declaration. The original tariff hikes, unveiled on April 2 during what Trump dubbed “Liberation Day,” had been suspended for 90 days. That moratorium was set to expire this Wednesday but has now been officially extended by executive order.
White House Press Secretary Karoline Leavitt confirmed that Trump plans to introduce a “reciprocal tariff rate” for U.S. partners by next month. “This announcement will send a chilling message to others,” said Wendy Cutler, Vice President of the Asia Society Policy Institute, highlighting the surprising inclusion of traditional allies like Japan and South Korea.
Despite earlier ambitions to finalize multiple trade agreements by July, the U.S. has so far only concluded deals with Britain and Vietnam. Talks with China have led to a temporary reduction in tariff levels, but their truce is set to expire in mid-August.
U.S. Treasury Secretary Scott Bessent said more agreements are on the horizon: “We are going to have several announcements in the next 48 hours,” he told CNBC, noting a surge in offers from negotiating partners.
Trump has also warned of an additional 10% tariff on countries aligning with BRICS nations, accusing them of promoting “anti-American policies” after public criticism of his trade strategy.
The European Commission reported that EU chief Ursula von der Leyen had a “good exchange” with Trump on trade matters during a recent call, as global leaders scramble to navigate the shifting U.S. trade landscape.
