Asia Number One Target of Trump’s Tariff Ultimatum

AFP/APP

Tokyo: US President Donald Trump has sent letters to 14 countries—primarily in Asia—warning that higher import tariffs will take effect on August 1 unless trade deals are reached with the United States.

This marks the second time Trump has set such a deadline, following a 90-day postponement on most tariffs announced in April. Countries with significant trade surpluses with the US are key targets, including:

Japan: $68.5 billion surplus (2024)

South Korea: $66 billion

Thailand: $45.6 billion

Indonesia: $17.9 billion

Here’s how some of the countries are responding:

Cautious Optimism for a Deal

Already grappling with targeted tariffs on steel and automobiles, South Korea now faces a 25% hike on its remaining exports. However, Seoul remains hopeful of reaching a deal.

South Korea’s National Security Adviser Wi Sung-lac said after meeting US Secretary of State Marco Rubio that both sides “expressed agreement” and hoped to finalize a deal through “close communication” before August 1.

As one of the world’s leading shipbuilders, South Korea pledged to work closely with Washington on the industry to achieve “tangible and mutually beneficial outcomes.”

Japan: Elections, Autos, and Agriculture in the Spotlight

A close ally and top foreign investor in the US, Japan is facing renewed pressure with a 25% tariff on its crucial automobile sector—up from the 24% initially announced in April.

Prime Minister Shigeru Ishiba called the move “genuinely regrettable,” adding that Japan has resisted “easy compromises” to defend core interests—especially in rice imports, a politically sensitive issue ahead of the July 20 upper house election.

Trump has repeatedly criticized Japan for limiting access to its rice and automotive markets.

Indonesia: US Wheat for Tariff Relief

Facing a steep 32% tariff, Indonesia is seeking to boost imports of American agriculture and energy products.

Jakarta announced it had signed a deal to import at least one million tons of US wheat annually for five years, valued at $1.25 billion, as part of its efforts to finalize an agreement.

Cambodia, Myanmar, Laos

Cambodia was hit with a record 49% tariff in April, later reduced to 36% in Monday’s letter. Prime Minister Hun Manet has expressed “good faith” in negotiations, offering lower duties on 19 categories of American goods.

Myanmar and Laos, facing 40% tariffs, are closely tied to Chinese investments. US officials have raised concerns over Chinese goods being rerouted through Southeast Asia to dodge tariffs.

Thailand and Malaysia

Thailand, facing 36% tariffs, is offering expanded access for US agricultural and industrial products, increased energy purchases, and a major aviation deal.

Acting Prime Minister Phumtham Wechayachai stressed the importance of maintaining strong ties with Washington. Finance Minister Pichai Chunhavajira said Bangkok aims to cut its US trade surplus by 70% in five years, potentially purchasing up to 80 Boeing planes.

Malaysia, which faces a 25% tariff, is continuing talks for a “balanced, mutually beneficial, and comprehensive” agreement, its trade ministry said.

Bangladesh

As the world’s second-largest textile exporter, Bangladesh faces a 35% tariff, threatening its $45 billion garment sector. Key American clients include Levi Strauss, Fruit of the Loom, and VF Corp (Vans, Timberland, The North Face).

Commerce Secretary Mahbubur Rahman said a deal had been “finalized,” with final negotiations set for Tuesday. Dhaka has pledged to increase imports of U.S. cotton, wheat, and oil, and to purchase Boeing aircraft.

Other Countries Targeted

Trump’s letters also reached:

Kazakhstan (25%)

South Africa (30%)

Tunisia (25%)

Serbia (35%)

Bosnia (30%)

The tariff push appears to be part of a broader strategy aimed at shrinking trade deficits and applying pressure ahead of the US presidential election campaign.