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Trump's tariff letters to Asia add pressure for deals by Aug 1

The Straits Times

|

July 09, 2025

Double down on good work, innovate together with boldness and keep the focus on citizens.

- Anjali Raguraman

Trump's tariff letters to Asia add pressure for deals by Aug 1

WASHINGTON/TAIPEI/KUALA LUMPUR The letters arrived in waves, laying out the consequences for Japan, South Korea, Malaysia, Indonesia, Thailand and others of failing to strike a deal in time to avert the elevated tariffs unilaterally announced by US President Donald Trump in early April and then paused until July 9.

Mr Trump began with his East Asian allies, telling Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae Myung that their exports to the US will attract 25 per cent tariffs, beginning on Aug 1.

In the hours that followed, most South-east Asian nations also received letters from the White House.

For Malaysia and Indonesia, both in hectic negotiations to clinch a deal, Mr Trump's letter specified the reciprocal tariffs of 25 per cent and 32 per cent respectively. Thailand was told to expect 36 per cent, while Laos and Myanmar faced 40 per cent each.

These rates are mostly in line with Mr Trump's announcement in April, when he shocked the region by announcing some of the highest tariffs here.

The new rates for Malaysia and Japan were a notch higher than the 24 per cent announced earlier. For Laos and Myanmar, the rates marked a slight drop from the previous 48 per cent and 44 per cent respectively. There was no explanation for the adjustments.

Cambodia received a surprise: a 36 per cent tariff, far lower than the 49 per cent rate in Mr Trump's original announcement.

Singapore, India and Taiwan, among others, have not received any formal notification from the White House.

In total, 14 nations received letters nearly identical in wording which were also posted on Truth Social on July 7 afternoon, or from 12.30am on July 8 Singapore time.

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