US President Donald Trump on Monday announced imposition of 25 per cent tariffs on Japan and South Korea, in his first letters to trading partners ahead of a deadline to reach a deal.
In near-identically worded letters to the Japanese and South Korean leaders, Trump said the tariffs would apply from August 1 because their trading relationships with Washington were "unfortunately, far from Reciprocal."
In his letters, Trump also threatened against retaliatory tariffs. "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% that we charge," it read.
But he also said he was ready to modify levies "downwards" if Japan and South Korea changed their trade policies.
Trump had said at the weekend that starting from Monday he would send a first batch of up to 15 letters to countries informing them that he would reimpose harsh levies that he had postponed in April.
The duties will not bounce back until August 1, Treasury Secretary Scott Bessent said over the weekend, a move that appears to give more room for dealmaking.
Trump imposed a 10 percent tariff on imports from almost all trading partners in early April, but some economies including the European Union were slated to have this rate increase further.
CNBC-TV18 quoted sources saying that India and the United States were likely to make a final decision on a mini-trade deal within the next 24 to 48 hours.
The average tariff under the mini deal is expected to be about 10%. Talks for a full Bilateral Trade Agreement (BTA) are likely to start after July 9, once the 90-day pause on Trump's April 2 tariffs, which affected several countries including India, comes to an end, the report said.
While the Trump administration has signaled hopes of striking dozens of deals by early July, there have been limited results so far. Washington has unveiled pacts only with Britain and Vietnam, while the United States and China agreed to temporarily lower tariff levels on each other's products that earlier reached three-digits.
Bessent told CNBC Monday that he would "be meeting with my Chinese counterpart sometime in the next couple of weeks."
The two sides have so far held high-level talks in Geneva and London.
But Washington and Beijing's pause on tit-for-tat tariffs is due to expire in mid-August.
On Sunday night, Trump wrote on his Truth Social platform that Washington would deliver "tariff letters" or deals to various countries on Monday.
In a separate post that night, Trump threatened another 10 percent tariff on countries aligning themselves with the emerging BRICS nations, accusing them of "Anti-American policies" after they slammed his duties at a summit.
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