US President Donald Trump on Monday placed a 25% tax on goods imported from Japan and South Korea, citing persistent trade imbalances with the two crucial American allies in Asia.
Trump provided notice of the tariffs to begin on August 1 by posting near-identically worded letters on Truth Social addressed to the Japanese and South Korean leaders, stating their trading relationships with Washington were "unfortunately, far from Reciprocal."
Trump warned the countries, both key US allies in East Asia, of an escalation if they responded to the new US tariffs. But he also said he was ready to modify levies "downwards" if Japan and South Korea changed their trade policies.
The US President has been talking for a while about ending trade negotiations and sending out letters informing countries about their tariff rates. On Friday, he told reporters that “I signed some letters and they’ll go out on Monday, probably 12.” (Two have been released so far.)
The letters, issued on White House stationary, have Trump’s typical flourishes and capitalization.
“We invite you to participate in the extraordinary Economy of the United States, the Number One Market in the World, by far,” he wrote to the leaders of South Korea and Japan. He ends both of the letters by saying, “Thank you for your attention to this matter!”
Over the past week the administration is stepping up pressure on trading partners to quickly make new deals before the Wednesday deadline.
That furthers the uncertainty for businesses, consumers and America's trading partners, and questions remain about which countries will be notified, whether anything will change in the days ahead and whether Trump will once more push off imposing the rates.
Trump and his top trade advisers say he could extend the time for dealmaking but they insist the administration is applying maximum pressure on other nations.
Treasury Secretary Scott Bessent said there would be a number of deals coming up. "We are going to have several announcements in the next 48 hours," Bessent told CNBC in an interview Monday.
"We've had a lot of people change their tune in terms of negotiations. So my mailbox was full last night with a lot of new offers, a lot of new proposals," Bessent said.
There was no immediate response from the White House on whether Trump would formally extend the Wednesday deadline for the tariffs to snap back.
Asked about Trump's letters, Bessent said these would inform partners of the tariff rate their products face when trading with the United States, unless they want to "come back and try to negotiate."
Bessent told CNBC Monday that he would "be meeting with my Chinese counterpart sometime in the next couple of weeks."
The two sides have so far held high-level talks in Geneva and London.
But Washington and Beijing's pause on tit-for-tat tariffs is due to expire in mid-August.
On whether he was disappointed in the number of trade deals achieved so far, Trump's trade adviser Peter Navarro maintained that he is "happy with the progress we've had."
"Every country that we run a major deficit with is fully engaged," he told CNBC on Monday.
Trump has also threatened another 10 percent tariff on countries aligning themselves with the emerging BRICS nations, accusing them of "Anti-American policies" after they slammed his duties at a summit.
For now, partners are still rushing to avert Trump's tariffs altogether.
The European Commission said that EU chief Ursula von der Leyen had a "good exchange" with Trump on trade when the pair spoke Sunday.
The steeper tariffs that Trump announced April 2 threatened to overhaul the global economy and lead to broader trade wars. A week later, after the financial markets had panicked, his administration suspended for 90 days most of the higher taxes on imports just as they were to take effect.
The negotiating window until July 9 has led to announced deals only with the United Kingdom and Vietnam.
Trump imposed elevated tariff rates on dozens of nations that run meaningful trade surpluses with the US, and a 10 per cent baseline tax on imports from all countries in response to what he called an economic emergency.
There are separate 50 percent tariffs on steel and aluminum and a 25 percent tariff on autos.
Since April, few foreign governments have set new trade terms with Washington as the Republican president demanded.
