Japan, S. Korea face 25% tariffs as Trump ramps up trade war

US President Donald J. Trump on Monday ramped up his trade war telling 14 nations, from powerhouse suppliers such as Japan and South Korea to minor trade players, that they now face sharply higher tariffs from a new deadline of Aug. 1.

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The imposition of a levy of 25% on US importers of all goods rattled Wall Street, with the S&P 500 Index knocked back sharply, though markets in Asia were taking the news in their stride.

In letters so far to 14 countries, Mr. Trump hinted at opportunities for additional negotiations, even while warning that reprisals would draw a like-for-like response.

“If, for any reason, you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added on to the 25% that we charge,” Mr. Trump told Japan and South Korea in letters released on his Truth Social platform.

The higher tariffs take effect from Aug. 1, and notably will not combine with previously announced sectoral tariffs, such as those on automobiles and steel and aluminum.

Countries have been under pressure to conclude deals with the US after Mr. Trump unleashed a global trade war in April that roiled financial markets and sent policymakers scrambling to protect their economies.

Mr. Trump’s executive order on Monday extends to Aug. 1 the Wednesday deadline for negotiations.

Asked if the deadline was firm, Mr. Trump replied, “I would say firm, but not 100% firm. If they call up and they say we'd like to do something a different way, we're going to be open to that.”

It was unfortunate that Mr. Trump was hiking tariffs on imports from Japan and South Korea, two of the closest US allies, but there was still time for a breakthrough in negotiations, said former US trade negotiator Wendy Cutler.

“While the news is disappointing, it does not mean the game is over,” added Ms. Cutler, the vice-president of the Asia Society Policy Institute.