US President Donald Trump on Monday announced 25 per cent tariffs on goods from South Korea and Japan, from August 1 onwards.
The letters posted on Truth Social are two out of a dozen letters that he had earlier said would be sent to a dozen nations on July 7.
Stating that America's trade relationship with the two nations was "far from Reciprocal", the letters also warned the South-east Asian nations that any attempts to retaliate against the US tariffs would lead to reciprocal retaliations from the US.
“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25 per cent that we charge,” Trump said, in the letters to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung.
India continues to wait for its tariff letter amid detailed negotiations for a bilateral trade agreement. The trade deal is set to be finalised before the stated deadline of July 9, after which the 26per cent tariff on New Delhi (10)
The deal between the two countries is set to be finalised ahead of the July 9 deadline, after which the 26 per cent reciprocal tariff on India (the 10 per cent baseline tariff, as well as the 16 per cent additional tariff—which was temporarily suspended for 90 days) will kick in.
India's tariff letter from the US is also set to be influenced by New Delhi's involvement in a sweeping BRICS joint statement, a part of which voiced "serious concerns about the rise of unilateral tariff and non-tariff measures which distort trade and are inconsistent with WTO rules".
In response to the bloc's actions that he has long disregarded, Trump announced that nations aligning themselves with what he called the "anti-American" policies emerging out of the BRICS Summit, would face an additional 10 per cent tariff.
The tariff issue may also see further complications, because just last month, Trump had endorsed a Senate sanctions bill proposing punitive tariffs of up to 500 per cent on countries like India and China that purchased Russian oil.
“If you are buying products from Russia and you are not helping Ukraine, then there’s a 500 per cent tariff on your products coming into the United States,” explained Senator Lindsey Graham, adding that India and China accounted for 70 per cent of Russia’s oil sales, which helped fund Moscow's offensives against Ukraine, an ABC News report said.