Donald Trump is back on tariff-watch, and this time he’s sending letters.
In his latest move to reset global trade terms, the US president has formally notified Japan and South Korea that 25% tariffs are heading their way, effective 1 August. He claims their trading relationships with the US are “far from reciprocal”.
These letters mark the opening salvo in what Trump describes as a new phase of his “America First” economic playbook. The timing is no accident. A 90-day suspension of the tariffs he originally announced in April is set to expire this Wednesday.
Back in April, Trump introduced sweeping levies on what he dubbed “Liberation Day”, arguing the US was being systematically short-changed by its trading partners. Market turbulence quickly followed, prompting the White House to pause the measures temporarily.
The latest move suggests that pause is over, or at least coming to an end. Officials now say the tariffs won’t be reimposed until 1 August, despite earlier hints that the original deadline would be enforced. Up to 15 countries are believed to be receiving letters this week, with Japan and South Korea the first to go public.
In the letters, Trump warned of an escalation if there was retaliation but left the door open to negotiate. He said he was willing to “modify levies downwards” if Tokyo and Seoul altered their trade policies. Japan’s Prime Minister Shigeru Ishiba has already pushed back, saying on Sunday that he “won’t easily compromise”.
So far, the Trump administration has made limited progress on the broader trade front. While it once claimed it would strike “90 deals in 90 days”, the only confirmed agreements to date are with the UK and Vietnam. Talks with China led to a temporary easing of tariffs, but that truce is set to expire in mid-August.
Treasury Secretary Scott Bessent insists the pipeline is still active. Speaking to CNBC on Monday, he said “several announcements” were expected in the next 48 hours. He also suggested that pressure was working, saying his inbox was “full” of new proposals overnight. Bessent confirmed he would be meeting his Chinese counterpart in the coming weeks following earlier discussions in Geneva and London.
Trump has also widened the scope of his threats. He is now warning of a further 10% tariff on countries aligning with the BRICS bloc, accusing them of pushing “Anti-American policies” after they criticised his approach at a recent summit.
For now, other US trading partners appear to be keeping their heads down. The European Commission said its president Ursula von der Leyen had a “good exchange” with Trump on Sunday. Whether that goodwill is enough to keep the EU off the tariff list remains to be seen.