Trump Issues Serious Tariff Threats Against 14 Countries—South Korea, Japan, and Others May Face Up to 40%
Trump increases trade pressure with an August 1 deadline, imposing severe tariff warnings on South Korea, Japan, and other countries.
Donald Trump has announced a wave of new tariffs that will go into effect on August 1st, putting international trading partners on high alert. Trump warned leaders of 14 nations, including South Korea, Malaysia, South Africa, Japan, and others, in letters he sent on Monday that tariff rates may increase by as much as 40%.
Trump signed an executive order extending the deadline for “reciprocal” tariffs, which excluded China, from July 9 to August 1. When asked whether the revised date was final, he responded, “I would say firm, but not 100% firm.”
The first to react were South Korea and Japan, both of which were subject to a 25% tariff. If market conditions deteriorate, South Korea threatened “immediate and bold action.” Japan is seeking a bilateral trade agreement and referred to the action as “regretful.”
Trade deficits and foreign trade policies that “impede” U.S. exports are mentioned in Trump’s letters. “Depending on our relationship, these Tariffs may be modified, either upward or downward,” he added.
Notifications were also sent to Myanmar, Laos, South Africa, Kazakhstan, and Malaysia; South Africa disputed the tariff basis as “an inaccurate representation” of trade statistics.
The news had a negative impact on stocks. Shares of Toyota, Nissan, and Honda that are listed in the United States fell 4%, 7.16%, and 3.86%, respectively. Dow dropped 422 points.
Trump’s advice to world leaders is to produce in the United States or risk cost increases.
