US Extends Tariffs Deadline but Threatens Higher Rates

Japan and South Korea, two key US allies in Asia, were scrambling to try to make deals with US President Donald Trump on Tuesday after he reiterated his threat this week to slap steep tariffs on their goods, despite granting more time to secure trade deals, the Washington Post reported. 

Japanese Prime Minister Shigeru Ishiba called Trump’s threat “deeply regrettable” but said his administration will continue negotiations with the US to reach a deal.  

Trump warned that Japan and South Korea would face 25 percent tariffs on goods if they fail to reach an agreement by Aug. 1, a deadline that was extended from July 9. The new tariffs would increase by one percent for Japan but would remain the same as those announced in April for South Korea. 

Twelve other countries face tariffs of up to 40 percent, CNBC wrote.  

In April, Trump paused tariffs for 90 days to give countries time to make trade deals after global markets declined sharply. The deadline has now been pushed to Aug. 1 for most countries. 

Currently, the US has only reached agreements with Vietnam and the United Kingdom.  

Trump said the new deadline is “firm, but not 100 percent firm,” which observers said indicates the US might be flexible on the timeline. 

After the new deadline extension, Japanese and South Korean stock markets remained stable, which analysts said was a positive response from investors. 

Meanwhile, South Korea’s newly appointed administration held emergency meetings but also appeared grateful for the extended deadline. 

Even so, analysts cautioned that the tariffs could undermine trust and stability within the alliance. Both East Asian countries have important, long-established security agreements with the US and are key partners in Washington’s efforts to counter China.