As he intensifies his pressure campaign to secure trade concessions, US President Donald Trump has announced high tariffs on over a dozen nations.
The 14 nations, including important US allies South Korea and Japan, were warned by Trump’s most recent trade threats on Monday that they would be subject to 25 to 40 percent tariffs starting on August 1 unless they increase manufacturing in the US and accept more US exports.
Trump said that the US had “decided to move forward” with their relationship with the two nations, but “only with more balanced, and fair, TRADE,” in similar letters.
The president left the door open for nations that lower trade barriers to be exempt from the measures, but he warned that any retaliatory taxes will be faced with even higher tariffs.
To highlight certain words, Trump used capital letters, “If you wish to open your heretofore closed Trading Markets to the United States, eliminate your tariff, and Non Tariff, Policies and Trade Barriers, we will, perhaps consider an adjustment to this letter.
“These Tariffs may be modified, upward or downward, depending on our relationship with your Country.”
Later on Monday, Trump told reporters that while the deadline of August 1 was “firm,” it was not “100 percent firm.”
“If they call up and they say we’d like to do something a different way, we’re going to be open to that,” he said.
Laos and Myanmar would be subject to Trump’s steepest tariffs, with both countries facing 40 percent duties. The countries with the lowest rate—Japan, South Korea, Malaysia, Kazakhstan, and Tunisia—would have to pay 25 percent.
South Africa and Bosnia and Herzegovina would be subject to 30 percent tariffs, while Bangladesh and Serbia to a 35 percent tariff, and Cambodia and Thailand to 36 percent duties. The rate for Indonesia would be 32 percent.
The baseline tariff of 10 percent had previously applied to all 14 nations, many of which have economies that are heavily dependent on exports.
Calling the tariff on his nation “truly regrettable,” Japanese Prime Minister Shigeru Ishiba said they will keep negotiating for a win-win solution.
To “reach a mutually beneficial negotiation result so as to swiftly address uncertainties stemming from tariffs,” South Korea’s Ministry of Trade, Industry and Energy announced in a statement that it would intensify negotiations before the deadline of August 1.
Asian countries are unable to stand together in the face of Trump’s threats because of their disparate trade profiles and geopolitical interests, Lawrence Loh, director of the Centre for Governance and Sustainability at the National University of Singapore Business School said.
“It is not possible for these countries, even for a formal pact like ASEAN, to act in a coordinated manner. It’s likely to be to each country on its own. That’s the trump card for Trump,” he remarked, speaking to Al Jazeera.
Loh added that nations in the region will be under pressure to give in to Trump to prevent damage to their economies.
“On balance for Asian countries, not giving concessions will turn out more harmful than playing along with the US. Especially for the smaller countries with less bargaining power, retaliation is out of the question,” he said.
Only three nations have so far announced agreements to de-escalate trade tensions including China, Vietnam, and the United Kingdom. This is despite the Trump administration increasing pressure on its trading partners to strike agreements to avoid harsher tariffs.
Earlier Monday, US Treasury Secretary Scott Bessent said that “several” agreements would be announced in the next 48 hours. However, he did not give details about what the agreements include, or which nations might be engaged in the negotiations.
During a media briefing, White House press secretary Karoline Leavitt stated that the administration was “close” to announcing agreements with other nations and that Trump would write more letters this week.