Trump extends tariff deadline, imposes reciprocal tariffs on Japan and South Korea

US president Donald Trump has extended his deadline to set certain tariff rates to August 1. A number of new reciprocal tariffs, announced July 7, will also take effect on this date.

Trump had initially enacted a freeze on tariff rates lasting 90 days, to July 9. During this time, he opened up discussions with other countries to either agree on lower tariffs or eliminate non-tariff barriers in an attempt “to move toward a more balanced trade relationship with the US”.

While the current progress was hailed as “significant and historic” by the White House, a press release noted that “the US trade deficit remains severe”. As such, while the country remains open to further trade discussions, Trump “is taking action to establish trade relations going forward”, thus extending the previously set deadline.

More regions to see change to tariff rates by August 1

With this in mind, Trump has now sent letters to a number of countries to state that they will be subject to new reciprocal tariff rates that intend to “make the terms of our bilateral trade relationships more reciprocal over time”. While some of these tariffs may be lower than those initially announced back in April, others are higher.

Among those informed, Japan, South Korea, Kazakhstan, Malaysia and Tunisia are to expect tariffs of 25 percent; South Africa and Bosnia and Herzegovina will see tariffs of 30 percent; Indonesia tariffs of 32 percent; Bangladesh and Serbia, tariffs of 35 percent; Cambodia and Thailand can expect tariffs of 36 percent; and Laos and Myanmar, 40 percent.

The decision to issue such rates reflects “Trump’s commitment to take back America’s economic sovereignty by addressing many nonreciprocal trade relationships that threaten our economic and national security”, the press release read. The tariffs intend to particularly target countries that “aren’t serious about addressing the tariff and non-tariff trade barriers that impeded American exports”.

So far, only a few countries have been able to establish a specified trade deal with the US. Among them is the UK, which had ultimately agreed to release or reduce numerous non-tariff barriers and would then fast-track certain American goods, including those that weren’t previously allowed in the country. A 10 percent tariff would still be in place for the UK, producing six billion dollars of revenues for the US, the region’s secretary of commerce, Howard Lutnick, said in a statement.