Tokyo: US President Donald Trump has issued letters to 14 countries—most of them in Asia—stating that higher import tariffs will come into effect on August 1, unless those nations reach new trade agreements with Washington. This marks the second such ultimatum, following a 90-day postponement of tariffs initially announced in April.

Countries with significant trade surpluses with the US are in the crosshairs. Among the key targets:

  • Japan: $68.5 billion surplus in 2024
  • South Korea: $66 billion
  • Thailand: $45.6 billion
  • Indonesia: $17.9 billion

South Korea

Facing a 25% tariff hike on remaining exports, South Korea is cautiously optimistic about reaching a deal. Following a meeting with US Secretary of State Marco Rubio, South Korea’s national security adviser Wi Sung-lac said both sides agreed to pursue tangible, mutually beneficial outcomes—particularly in shipbuilding, a critical Korean industry.

Japan

Japan, already hit with 25% levies on autos, now faces additional tariffs slightly up from 24% in April. Prime Minister Shigeru Ishiba expressed regret, saying Japan has avoided “easy compromises” in favour of protecting domestic interests. Trump has accused Japan of limiting access to its rice and vehicle markets—a sensitive issue amid Japan’s upper house elections on July 20.

Indonesia

Facing 32% tariffs, Indonesia is moving fast to strike a deal. It has already agreed to import at least 1 million tons of US wheat annually for 5 years, worth $1.25 billion, and is considering further US agricultural and energy imports.

Thailand

Bangkok, told it will face 36% levies, is offering market access in agriculture and industry, energy deals, and a massive Boeing aircraft order. Acting PM Phumtham Wechayachai stressed preserving strong US ties, while Finance Minister Pichai Chunhavajira said Thailand aims to reduce its US surplus by 70% in 5 years, balancing trade within 7–8 years.

Cambodia

April’s 49% tariff has now been cut to 36%. Prime Minister Hun Manet assured Washington of Phnom Penh’s commitment and has lowered tariffs on 19 US product categories.

Myanmar and Laos

With 40% tariffs each, both nations—heavily dependent on Chinese investment—were warned about enabling Chinese goods to bypass US sanctions via Southeast Asia. This remains a key US concern.

Malaysia

Facing a 25% levy, Malaysia’s trade ministry said it seeks a “balanced and comprehensive” agreement.

Bangladesh

The world’s second-largest textile exporter is under threat of 35% tariffs, impacting major US brands like Levi’s, Fruit of the Loom, and VF Corp (Vans, Timberland, The North Face). Dhaka has proposed wheat, cotton, oil imports and Boeing purchases. “Terms have been finalised,” said Commerce Ministry Secretary Mahbubur Rahman, with negotiations expected to conclude this week.

Other countries

Also on Trump’s letter list:

  • Kazakhstan: 25%
  • South Africa: 30%
  • Tunisia: 25%
  • Serbia: 35%
  • Bosnia: 30%

The tariff blitz underscores Trump’s aggressive “America First” strategy, targeting nations with large trade imbalances while using Boeing purchases, agricultural deals, and energy contracts as bargaining tools.
(With AFP inputs)