EU gets reprieve as Trump announces higher tariffs on Japan, South Korea

The European Union will not face higher tariffs from the United States, unlike several other countries that received letters from US President Donald Trump Monday informing them of sharply higher tariffs on goods starting 1 August.

In letters to 14 countries so far, including Japan and South Korea, as well as smaller exporters Serbia, Thailand and Tunisia, Trump said he would be imposing an additional 25 percent tariffs from 1 August, warning them against imposing their own tariffs.

"If, for any reason, you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added on to the 25 percent that we charge," Trump told Japan and South Korea in letters released on his Truth Social platform.

The higher tariffs will not combine with previously announced sectoral tariffs, such as those on automobiles and steel and aluminium, which means that tariffs on Japanese cars, for example, would stay at 25 percent, rather than increasing to 50 percent.

EU gets more time

Other trading partners including the European Union, got an extra three weeks to negotiate agreements with the US after Trump signed an executive order Monday extending to 1 August the Wednesday deadline for negotiations.

The EU still aims to reach a trade deal by Wednesday after European Commission President Ursula von der Leyen and Trump had a "good exchange," a commission spokesperson said.

Since early April, European steel and aluminium exports to the US have been subject to a 50 percent tariff, along with 25 percent for cars and car parts and 10 percent on most other products.

The US is looking into further tariffs on pharmaceuticals and semiconductors.

China has until 12 August to reach a deal with the US to prevent Trump from reinstating additional import tariffs.

Only two countries – Britain and Vietnam – have made deals with the US so far.

(with Reuters)