US President Donald Trump sent new tariff letters to 14 countries on Monday, including Asian allies Japan and South Korea, warning them of higher tariff-imposition if they don’t finalise trade deals with the US by the now-extended August 1 deadline.
The contents of the letters were revealed to the media by White House Secretary Karoline Leavitt, and posted by Trump on his social media, Truth Social.
Here’s a rundown on which country got the letter, and what it says:
Myanmar tariff rate: The country was threatened with 40 per cent tariffs. It mainly exports clothing, leather goods, and seafood to the US. Myanmar’s Maj Gen. Zaw Min Tun, the spokesperson for the country’s ruling military government, said the government will follow up with negotiations.
Laos tariff rate: Also threatened with 40 per cent tariffs, Laos exports to the US shoes with textile uppers, wood furniture, electronic components, and optical fibre.
Cambodia tariff rate: Mainly exporting textiles, clothing, shoes, and bicycles, Cambodia was told they would be imposed 36 per cent tariffs. Cambodia's chief negotiator, Sun Chanthol, said the country successfully got the tariff dropped from the original 49 per cent that Trump had announced in April to 36 per cent. It is ready to hold a new round of negotiations, Chanthol said, while appealing to investors, especially factory owners, and the country’s nearly 1 million garment workers, not to panic about the new tariff rate announcement.
Thailand tariff rate: The country mainly exports computer parts, rubber products and gemstones. It has been warned of 36 per cent tariff hikes. Thailand’s Deputy Prime Minister, Pichai Chunhavajira, said his country will continue to push for tariff negotiations with the US. On Sunday, Thailand submitted a new proposal that includes opening the Thai market for more American agricultural and industrial products and increasing imports of energy and aircraft.
Bangladesh tariff rate: The key exporter of clothing to the US was slapped with a notice of 35 per cent tariff hike. Bangladesh's finance adviser, Salehuddin Ahmed, said they hoped to negotiate for a better outcome. There are also concerns that additional tariffs would make Bangladesh’s garment exports less competitive with countries like Vietnam and India.
Serbia tariff rate: The country would also face a 35 per cent tariff hike, as per Trump’s letter. It exports software and IT services, and car tires to the US.
Indonesia tariff rate: Exporting palm oil, cocoa butter, and semiconductors to the US, it was threatened with a 32 per cent tariff hike if it didn’t secure a deal with the US by August 1.
Bosnia and Herzegovina tariff rate: The key exporter of weapons and ammunition was informed of 30 per cent tariffs in Trump’s letter in case it failed to secure a trade deal with the US.
South Africa tariff rate: Another 30 per cent tariff increase for South Africa, will exports to the US platinum, diamonds, vehicles and auto parts.
The office of South African President, Cyril Ramaphosa, said in a statement that the tariff rates announced by Trump “mischaracterized” the trade relationship with the US, but it would “continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the United States” after having proposed a trade framework on May 20.
Japan tariff rate: An important ally of the US in South Asia, Japan was also warned of 25 tariffs on key exports like autos, auto parts, and electronics. Japanese Prime Minister Shigeru Ishiba called the tariff “extremely regrettable”, but said he was determined to continue negotiating. Ishiba said Trump's tariff rate is lower than the levels he had threatened earlier and opens the way for further negotiations.
Kazakhstan tariff rate: Also warned of 25 per cent tariff hike, the country exports oil, uranium, ferro alloys and silver to the US.
Malaysia tariff rate: Mainly exporting electronics and electrical products to the US, it got told of a 25 per cent tariff imposition.
Malaysia's government said it will pursue talks with the US and a cabinet meeting was scheduled for Wednesday.
South Korea tariff rate: Exporting mostly vehicles, machinery, and electronics, Trump said the US will impose 25 per cent tariffs on its products. South Korea's Trade Ministry said early Tuesday that it will accelerate negotiations with the United States to achieve a deal before the tax goes into effect.
Tunisia tariff rate: Another 25 per cent-tariff notice sent to the country that exports animal and vegetable fats, clothing, fruit and nuts to the US.
It remains to be seen if trade deals are successfully clinched by the countries with the US before the expiry of the new deadline, or if Trump further extends the deadline.
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