Asia target of Trump tax letters

DONALD Trump sent letters to 14 countries, mainly in Asia, informing them that higher import tariffs will kick in on August 1 unless they reach a deal with the US.

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It is the second time the US president has set a deadline after he postponed tariffs on almost all countries in April for 90 days.

Countries that have large trade imbalances with the US have been key targets, including Japan ($68.5 billion surplus in 2024), South Korea ($66bn), Thailand ($45.6 billion) and Indonesia ($17.9 billion).

Here is what Trump’s letters mean for these countries:

South Korea, already burdened by levies on steel and automobiles, is facing a 25% tariff hike on its remaining exports to the US, but is cautiously optimistic for a deal.

Washington “hoped the two sides could reach an agreement before then (August 1)”, South Korea's national security adviser Wi Sung-lac said after meeting US Secretary of State Marco Rubio this week.

South Korea, one of the world’s biggest shipbuilders, agreed to “coordinate closely” with the US to achieve “tangible and mutually beneficial outcomes”, he said.

A close US ally and its biggest investor, Japan has to deal with a 25% levy on its key auto industry.

It is facing similar tolls on other goods, up from 24% announced in April, but better than the “30%, 35% or whatever the number is that we determine” threatened by Trump last week.