US President Donald Trump, apparently impatient with the slow progress of trade negotiations, on Monday slapped 25 percent unilateral tariffs on Japan and South Korea and equal or higher import taxes on several other nations ahead of a self-imposed Wednesday deadline.
Even as intensified his trade war by threatening punitive tariffs of up to 40 percent on goods from 14 countries Trump delayed their implementation until August 1 in a bid to allow more time for negotiations.
Trade analysts said the move shows that the mercurial Trump is using threats to jump-start negotiations.
Trump sent two-page letters to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung saying the new tariff rates would take effect on August 1.
Minutes later, Trump announced tariffs of 40 per cent on imports from Myanmar and Laos, 36 per cent on Cambodia and Thailand, 35 per cent on Bangladesh and Serbia, 32 per cent on Indonesia, 30 per cent on South Africa and on Bosnia and Herzegovina, and 25 per cent on Kazakhstan, Malaysia, and Tunisia. These rates all stem from an April 2 US announcement of global duties followed by a pause through this Wednesday to allow for talks with a list of affected countries.
Trump also warned all 14 recipients of his letters that if “for any reason” they decided to raise their tariffs, US tariffs would further increase by the same amount.
In a flurry of coordinated announcements, the US president revealed he had signed an executive order extending the pause on so-called “reciprocal” tariffs—initially introduced in April—from July 9 to August 1.
The letters, some of which Trump posted to Truth Social, were sent to the heads of governments in Japan, South Korea, Malaysia, Kazakhstan, South Africa, Myanmar, Laos, Tunisia, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia and Thailand. Together, these countries exported $465 billion worth of goods to the United States last year, with Japan and South Korea accounting for $280 billion.
The White House clarified that these tariffs would not be stacked on top of existing sectoral tariffs—such as the 25 percent levy on foreign automobiles—but rather integrated into them.
Trump encouraged the targeted countries to shift manufacturing to the US in order to avoid tariffs altogether. “If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto that 25 percent we charge,” Trump warned in the letters. “These tariffs may be modified, upward or downward, depending on our relationship. You will never be disappointed with the United States of America.”
The White House confirmed that similar letters will be sent to additional countries in the coming days.
Trump has also threatened an extra 10 percent tariff on countries that closely align with the BRICS bloc—Brazil, Russia, India, China and South Africa—following a statement from BRICS leaders condemning unilateral tariff actions.
The tariff announcements triggered immediate market reaction. The S&P 500 dropped 0.79 percent, posting its worst single-day performance in three weeks. The Dow Jones Industrial Average fell by 422 points (0.94 percent), while the Nasdaq Composite slipped 0.92 percent. Shares of Japanese automakers with major US exposure were particularly hit—Nissan fell by 7.16 percent, Honda by 3.86 percent, and Toyota by 4 percent.
The uncertainty surrounding the tariff regime has added to volatility in global markets. Although the US dollar has broadly recovered, it remains under pressure after a prolonged period of trade friction. The first half of 2025 marked its worst six-month performance in over half a century, with a 10.8 percent decline.