President Donald Trump officially postponed imposing additional tariffs on US imports, as he sent letters to 14 nations, including Japan and South Korea, outlining the levies they have to pay. The latest move follows a 90-day delay the White House put on some of its strongest import tariffs, which were to end this week.
The president reiterated a threat to impose a 25% duty on imports into the country from Japan and South Korea and posted a series of other letters to world leaders threatening tariffs from 1 August.
Increased tariffs had been due to take effect on 9 July, previously suspended, with White House officials indicating that they would seek to negotiate trade deals. Asked by a journalist if the new August date was a deadline, Trump replied: “I’d say firm, but not 100% 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.”
Oxford Economics economist Adam Ahmad Samdin explained the extension was not unexpected as trade deals take years to complete.
These kinds of deals are typically very detailed,” he said, stating that while Vietnam became the second nation, after the UK, to agree a deal with the US, it was more of a “broad framework” accelerating negotiations, not a complete deal.
Also on Monday, Trump posted letters received addressed to 14 countries’ leaders on social media, notifying them of his recent tariff plans, and adding that the rates might be adjusted “upward or downward, depending on our relationship with your country.”.
Most of the tariff percentages in the letters resembled those described in April when he issued his “Liberation Day” declaration, threatening a flood of new tariffs on imports from other nations.
The remarks indicated Trump would be receptive to more trade negotiations, said investment strategist Vasu Menon at OCBC Bank. The hopes that Trump is again resorting to a negotiating ploy, instead of pursuing serious tariff threats, are encouraging for investors,” Mr Menon said.
Trump contends that imposing tariffs will safeguard American companies from foreign competition and also stimulate domestic manufacturing and employment.
But economists add that the measures will increase prices in the US and lower trade. The US’s three major share indexes fell on Monday, with Toyota’s US-listed shares falling 4%.
Japan exported over $148bn (£108.6bn) of goods to America last year, putting it as America’s fifth largest import supplier behind the European Union (EU), Mexico, China and Canada, US trade statistics show. South Korea also made it into the top 10.
