On Monday, President Donald Trump ramped up pressure on U.S. trading partners by sending letters to the leaders of several countries to inform them of their new tariff rates. At the same time, Trump eased the pressure by signing a decree on Monday extending the effective date of all 'reciprocal' tariffs to August 1, except for those applied to China.
These 'reciprocal' tariffs were set to take effect on Wednesday. In some cases, the letters sent by Trump specify new 'reciprocal' tariff rates that are higher or lower than those from April.
Asked before a dinner at the White House on Monday night about the firmness of the new August 1 deadline, Trump was not categorical. 'I would say firm, but not 100%. If they call us and say they would like to proceed differently, we will be open to that idea.'
Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung were the first recipients of Trump's letters.
The two countries will face a 25% tariff starting August 1, according to the letters, but both nations stated on Tuesday that they plan to engage in new discussions with the United States, with Japan saying it is working on a trade agreement.
Trump announced that similar letters had been sent to Malaysia, Kazakhstan, South Africa, Myanmar, and Laos, informing their leaders of new tariff rates that could reach 40%.
Later in the day, he released seven new letters sent to the leaders of Tunisia, Bosnia and Herzegovina (which is expected to reach a 30% tariff), Indonesia, Bangladesh, Serbia, Cambodia, and Thailand, bringing the total to 14 letters delivered on Monday.
In these letters, Trump particularly complains about the U.S. trade deficits with these countries, which imply that the U.S. buys more goods from these countries than American companies export there. Trump also specified that these tariffs would be set in response to other policies that he believes hinder the export of American products.
He encouraged leaders of the countries to manufacture goods in the United States to avoid tariffs.
This announcement comes ahead of the initial deadline set for July 9 at midnight (Eastern Time) for countries to finalize agreements or face increased tariffs. This date marks the end of the pause on 'reciprocal' tariffs, briefly established in April. Since then, the affected countries have been subject to a minimum tariff of 10%.