President Donald Trump sent letters to leaders of 14 countries, informing them of new additional tariff rates, some as high as 40%, CNN reported July 8.
The tariffs were scheduled to take effect July 9, but have been delayed until Aug. 1, with China the lone exception to the extension.
Here are four things to know:
- Japan and South Korea will each face a 25% tariff, according to the letters. Additional letters were also sent to Malaysia, Kazakhstan, South Africa, Myanmar, Laos, Tunisia, and Bosnia and Herzegovina, with each facing a 30% levy. Indonesia, Bangladesh, Serbia, Cambodia and Thailand are set to face tariffs of up to 36%.
- Japan and South Korea, which combined exported $280 billion in goods to the U.S. last year, are among the top sources of pharmaceuticals, vehicles, machinery and semiconductors. Others, like Cambodia and Bangladesh, are also major suppliers of apparel.
- In the letters, President Trump said the tariffs were in response to trade deficits and policies that impede U.S. exports. He also encouraged leaders to manufacture goods in the U.S. to avoid the new levies and warned if any countries impose retaliatory tariffs, the U.S. could raise rates higher.
- Ahead of a dinner at the White House July 7, President Trump said the Aug. 1 deadline was “firm but not 100% firm,” adding, “If they call up and they say would like to do something a different way, we’re going to be open to that.”
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