Asia number one target of Trump’s tariff 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 United States.

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 United States have been key targets, including Japan ($68.5 billion surplus in 2024), South Korea ($66 billion), 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 percent tariff hike on its remaining exports to the United States, 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 on Monday.

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

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

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

Prime Minister Shigeru Ishiba told a cabinet meeting Tuesday that the tariff set out in the letter was “genuinely regrettable,” local media reported.

The reason for not making a deal, he said, was “the Japanese government has avoided making easy compromises, firmly demanding what should be demanded, protecting what should be protected, and has conducted rigorous negotiations.”

Trump has criticized Japan for not opening its market enough to US rice and vehicles.

The Japanese government says it is defending local farmers’ interests and has taken a hardline approach to talks.

“We have no intention of negotiating at the expense of agriculture,” Japan’s tariffs envoy Ryosei Akazawa said Tuesday.

Indonesia, facing 32 percent tariffs, said Tuesday it was optimistic of striking a deal as chief economic minister Airlangga Hartarto headed to the United States to resume talks.

With several weeks breathing room, Jakarta was “very optimistic about the negotiation,” presidential spokesman Hasan Nasbi said.

Indonesia plans to increase its agricultural and energy imports from the United States to finalize an agreement, Airlangga recently said.

Indonesia already announced Monday it had agreed to import at least one million tons of US wheat annually for the next five years, worth $1.25 billion.

Trump announced 49 percent tariffs on Cambodia in April, one of the highest levies in his blitz. Monday’s letter to the country that hosts many Chinese owned factories, reduces this rate to 36 percent.

Prime Minister Hun Manet assured the White House of Cambodia’s “good faith,” with reduced tariffs on 19 categories of US products.

Myanmar and Laos, which face 40 percent tolls, rely on Chinese investments, while their supply chains are closely intertwined with Asia’s largest economy.

Washington has repeatedly highlighted the risk of Chinese products passing through Southeast Asian countries to avoid US tariffs targeting China.

Thailand was told it faces 36 percent levies. Bangkok is offering more access to its market for US agricultural and industrial products, increasing its energy purchases, and boosting orders for Boeing airplanes.

Acting prime minister Phumtham Wechayachai told reporters Tuesday he wanted a “better deal,” adding that “the most important thing is that we maintain good relations with the US.”

Bangkok aims to reduce its US trade surplus by 70 percent within five years, achieving balance in seven to eight years, Finance Minister Pichai Chunhavajira recently told Bloomberg News.

Thai Airways could commit to purchasing up to 80 Boeing planes in the coming years, according to Bloomberg.

Malaysia faces a 25 percent tariff and the trade ministry said Tuesday it would continue negotiations to reach a “balanced, mutually beneficial, and comprehensive trade agreement.”

The world’s second-largest textile manufacturer is facing a 35 percent tariff on its goods but was hoping to sign an agreement by early July.

Textile and garment production accounts for about 80 percent of Bangladesh’s exports, and supplies US brands including Vans, Timberland and The North Face.

Dhaka has proposed to buy Boeing planes and boost imports of US wheat, cotton and oil.

“We have finalized the terms,” Commerce Ministry Secretary Mahbubur Rahman told AFP, adding that negotiators were set to meet Tuesday.

Kazakhstan (25 percent), South Africa (30 percent), Tunisia (25 percent), Serbia (35 percent), and Bosnia (30 percent) are among the other recipients of the letters made public by Trump on Monday.