President Donald Trump has officially postponed a planned increase in tariffs on U.S. imports, while simultaneously notifying 14 countries — including key trade partners Japan and South Korea — of updated tariff rates they could soon face. The announcement comes just as a 90-day pause on some of the administration’s most aggressive trade measures was due to expire.
Trump reaffirmed the potential imposition of a 25% tariff on goods from Japan and South Korea and published a series of letters sent to global leaders, stating that new tariffs could take effect from August 1. Initially, the higher tariffs had been scheduled to begin on July 9 but were suspended to allow time for potential trade negotiations.
When asked whether the new August deadline was definitive, Trump responded: “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.”
Economist Adam Ahmad Samdin of Oxford Economics noted that the extension was expected, given the complexity of negotiating international trade agreements. “Such deals are usually extremely detailed,” he said, pointing out that even Vietnam — which recently became the second country after the UK to reach a framework agreement with the U.S. — is still far from finalizing a comprehensive deal.
In a social media post on Monday, Trump shared copies of his letters to leaders of 14 countries, stating that tariff rates could be adjusted “upward or downward, depending on our relationship with your country.”
Most of the proposed rates were in line with those Trump outlined in April during his “Liberation Day” speech, where he threatened sweeping new tariffs on foreign goods.
Vasu Menon, an investment strategist at OCBC Bank, said Trump’s tone suggested room for negotiation, which might reassure markets. “It appears Trump is using tariffs as a bargaining chip rather than a concrete threat, which gives investors some optimism,” Menon said.
The Trump administration argues that tariffs are a tool to shield American businesses from unfair foreign competition and stimulate domestic manufacturing and job growth. However, many economists warn that such measures are likely to increase prices for U.S. consumers and disrupt global trade flows.
Market reactions were mixed. All three major U.S. stock indexes dipped on Monday, with shares of Toyota — a major exporter to the U.S. — falling 4%. Japan exported over $148 billion worth of goods to the U.S. last year, making it the country’s fifth-largest source of imports, following the EU, Mexico, China, and Canada. South Korea also ranks among the top ten.
