Keeping with his promised attempts to punish countries that levy higher tariffs on US products, American President Donald Trump on Monday announced tariffs on 14 countries. He has not announced any tariff on India as yet with the government and the US attempting to stitch a free trade deal in an attempt to evade the tariff crackdown.
The highest tariff of 40 per cent was imposed on Laos and Myanmar and the least, 25 per cent, on Japan, South Korea, Malaysia, Tunisia and Kazakhstan.
Products and services from South Africa, Bosnia and Herzegovina will face a 30 per cent tariff. Thailand, Cambodia, Bangladesh, Serbia and Indonesia will be levied tariffs ranging from 32 per cent to 36 per cent.
The US government has been keen to negotiate on tariffs and have signalled intent to extend their August 1 deadline to reach deals.
Trump indicated that he was in between negotiations with several countries, including India, which could soon be wrapped up, however, “for the most part” he will continue to impose higher tariffs. Negotiations with the UK, Vietnam and China have been completed, Trump added.
Trump indicated that he was open to discussion, saying the August 1 deadline was “not 100 per cent firm”, opening the possibility of additional negotiations and delays.
There has been no change in tariffs of South Korea since the April 2 announcement, while Japan’s rate has increased by a point. Trump imposed a cap of 10 per cent on all reciprocal tariffs, effective until July 9.
The new tariffs that take effect from August 1, will not be added to sector-specific tariffs announced earlier. This means, Japanese vehicle tariffs will remain at 25 per cent, rather than the existing 25 per cent auto sector tariff, climbing to 50 per cent with the new reciprocal rate.
In April, Trump shook up global trade, disrupting international trade and shaking financial markets with this tariff tantrum. Trading partners were granted little space to breathe with Trump signing an executive order extending the Wednesday deadline to August 1.