Trump issues tariff threats to 12 more countries after Japan and South Korea

US President Donald Trump has published letters detailing tariff rates for Malaysia, Kazakhstan, Tunisia, South Africa, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia, Thailand, Laos, and Myanmar.

On his Truth Social media account, Trump shared the tariff letters for these 12 countries, following similar announcements for South Korea and Japan.

In the letters, Trump announced the tariff rates that will be applied to these countries starting August 1, noting that the rates would increase in the event of any retaliation.

Trump indicated that adjustments are possible, stating, “These tariffs may be modified up or down depending on our relationship with your country.”

The letters specified that the proposed tariff rates are 25% for Malaysia, Kazakhstan, and Tunisia; 30% for South Africa and Bosnia and Herzegovina; 32% for Indonesia; 35% for Bangladesh and Serbia; 36% for Cambodia and Thailand; and 40% for Laos and Myanmar.

Three agreements: Britain, China, and Vietnam

Previously, Trump announced that a 25% tariff would be applied to all products sent from Japan and South Korea to the US starting August 1, separate from existing sectoral tariffs.

These tariffs were nearly identical to those announced in Trump’s April 2 “liberation day” speech, which caused significant turmoil in global financial markets.

The reciprocal tariffs were postponed a week later to July 9, allowing markets to stabilize. However, since then, the White House has only signed three trade agreements: with Britain, China, and Vietnam.

Carrot and stick for Japan and South Korea

White House Press Secretary Karoline Leavitt stated on Monday that the new tariffs will be imposed on August 1 for countries that have not yet signed an agreement, giving them more time for trade negotiations.

The scale of Trump’s tariff threat on Monday put pressure on the markets, despite the postponement. The S&P 500 closed down 0.8% on Monday, while the currencies of Japan, South Korea, and South Africa depreciated by about 1% against the US dollar.

In letters published on the Truth Social platform, Trump said the US trade deficit in goods with Japan and South Korea is “a major threat to our economy and even our national security.”

In letters addressed to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung, Trump stated that if either country raises tariffs in retaliation, “whatever figure you choose to increase it by, we will add that to the 25% we are imposing.”

However, he signaled that the proposed tariffs could be negotiated, adding that if the countries open their markets, “we might consider making an adjustment… These tariffs may be modified up or down depending on our relationship with your country.”

On Monday, Trump also announced he would impose high tariffs on Indonesia, Malaysia, Thailand, Kazakhstan, Laos, Myanmar, and several other countries.

The US already applies a range of sectoral tariffs on imports from all countries. These include a 25% tariff on automobiles and auto parts and a 50% tariff on steel and aluminum imports. A US official confirmed that goods already subject to sectoral tariffs, such as automobiles and metals, will not be affected by the new rates announced by Trump.

Washington is also conducting national security investigations that could lead to tariffs on a range of other goods and sectors, including aviation, pharmaceuticals, lumber, copper, chips, and consumer electronics.

In recent weeks, Trump has hardened his rhetoric toward Tokyo, targeting the key trading partner and accusing it of being “spoiled” for refusing to buy more American rice.

Weeks of negotiations between US and Japanese trade officials resulted in a series of proposals aimed at preventing a trade impasse, including Japan purchasing more US energy and agricultural products. However, Tokyo also demanded a full exemption from Trump’s 25% automobile tariffs.

Meanwhile, trade negotiations between South Korea and the US have been postponed due to political turmoil in Seoul following the impeachment of former South Korean President Yoon Suk Yeol.

EU negotiations

Additionally, the European Union was expected to sign an interim trade agreement this week to keep tariffs at 10% while negotiations with the US continue.

EU Trade Commissioner Maroš Šefčovič told member states on Monday that both sides are working on plans to reduce the 25% tariff on vehicles. However, according to two individuals familiar with the talks, there is no guarantee that the 50% steel tariffs will also be lowered.