WASHINGTON: US President Donald Trump said on Monday (Jul 7) he would impose a 25 per cent tariff on goods from Japan and South Korea starting on Aug 1, posting letters to the leaders of those countries on his social media platform.
In his first letters to trading partners ahead of a deadline to reach a deal, Trump penned near-identically worded letters to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung.
Trump said the tariffs would apply from Aug 1 because their trading relationships with Washington were “unfortunately, far from reciprocal”.
The letters warned both countries to not retaliate by increasing their own import taxes, or else the Trump administration would increase import taxes that could damage the auto and electronics sectors of Japan and South Korea.
Both countries are key US allies in East Asia.
“If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge,” Trump wrote.
But he also said he was ready to modify levies “downwards” if Japan and South Korea changed their trade policies.
Ishiba had said Sunday that he “won’t easily compromise” in trade talks with Washington.
Trump originally announced sweeping tariffs on world economies on what he called “Liberation Day” on April 2, claiming the US was being “ripped off”.
Amid market turmoil, Trump then suspended the initial tariffs for 90 days, a deadline that expires on Wednesday. But the Trump administration has said that the duties will not “boomerang” back until Aug 1, apparently extending the deadline despite denials from officials.
While the Trump administration has signaled hopes of striking dozens of deals by early July – at one point boasting of “90 deals in 90 days” – there have been limited results so far.
Washington has unveiled pacts with only Britain and Vietnam, while the US and China agreed to temporarily lower tariff levels on each other’s products that earlier reached three-digits.
Source: CNA
