US President Donald Trump on Monday started sending out tariff letters to countries, saying he would impose a 25 per cent tariff on goods from Japan and South Korea from August 1.
The US President announced the decision on his social media platform, Truth Social, where he posted copies of the letters.
The letters warned Japan and South Korea not to retaliate by increasing their own import taxes, or else the US administration would increase import taxes.
“If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the 25 per cent that we charge,” Trump said in the letters to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung.
“Please understand that the 25 per cent number is far less than what is needed to eliminate the Trade Deficit disparity we have with your country,” Trump said in both letters, encouraging them to manufacture goods in the United States to avoid tariffs.
“There will be no tariff if South Korea or Japan or companies within your country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely-In other words, in a matter of weeks,” Trump added.
Trump has threatened to send more letters out to heads of countries before the July 9 deadline, to make deals or face the threat of higher tariffs.
“These Tariffs may be modified, upward or downward, depending on our relationship with your country. You will never be disappointed with the United States of America,” Trump said in the letters sent out to Japan and South Korea.
Meanwhile, the United States' Treasury Secretary Scott Bessent said that Washington is close to reaching agreements on several trade deals as “a lot of proposals” have poured in from various countries at the last minute.
Trump has announced a number of trade deals, including with Vietnam and China. He had stated last month that the US and India “may sign an agreement that will open up India for US goods.
India’s high-level official delegation, led by chief negotiator Rajesh Agrawal, has returned from Washington after the trade talks with US officials without reaching a final agreement on the sensitive issue of trade in agricultural and dairy products that the US is pushing for.
Picture Courtesy: IANS