A wave of shock and regret has rippled across the globe as key US allies and trading partners digest President Donald Trump’s latest tariff letters, which threaten steep new duties on their exports.
Despite the unwelcome news, most nations have publicly expressed optimism that ongoing negotiations will ultimately yield more favorable results ahead of an August 1 deadline.
President Trump on Monday began notifying over a dozen trading partners of their new tariff rates.
The announcement, made via a series of posts on his Truth Social platform, has prompted a flurry of diplomatic responses, with nations from Asia to Africa scrambling to address the new trade reality.
In Tokyo, Japanese Prime Minister Shigeru Ishiba described the latest tariff announcement as “truly regrettable”, according to local media reports. He stressed, however, that Japan would continue its negotiations with the US government.
Japan is one of two nations set to see an increase in the “reciprocal” tariff rate that President Trump had first announced in April.
According to the White House, Japanese imports into the US will now face a 25% levy starting August 1, a slight increase from the 24% announced earlier.
At a meeting with cabinet ministers on Tuesday morning, just hours after Trump posted copies of the tariff letters, Ishiba noted that the Trump administration had proposed a plan to continue talks until the August deadline.
“Depending on Japan’s response, the content of the letter could be revised,” Ishiba said, signaling a belief that the tariff rate is not yet set in stone.
Similarly, South Korean leaders have vowed to accelerate their tariff negotiations with the Trump administration to “swiftly resolve trade uncertainties,” according to a statement from the Ministry of Trade, Industry and Energy cited by Yonhap News.
President Trump announced a 20% blanket tariff on imports from South Korea, a figure unchanged from the “reciprocal” tariff level announced in April.
South Korea’s trade minister, Yeo Han-Koo, also reportedly asked the US to lower tariffs on specific goods like automobiles and steel for Korean companies during a meeting with US Commerce Secretary Howard Lutnick in Washington.
Reactions from Thailand, Malaysia, and South Africa
The reaction in Thailand was one of surprise. Thai Finance Minister Pichai Chunhavajira said on Tuesday that he was “a little shocked” by the latest tariff rate but remained “confident” that it will eventually drop to levels similar to those imposed on other countries, according to Reuters.
Thailand is facing a 36% tariff on its exports to the US—one of the steepest rates among the 14 nations mentioned by Trump on Monday, though it is also unchanged from the April level.
Malaysia, which saw its tariff rate rise to 25% from a previously threatened 24%, stated that it will continue to engage with the US to address outstanding issues.
“Malaysia is committed to continuing engagement with the US towards a balanced, mutually beneficial, and comprehensive trade agreement,” the Ministry of Investment, Trade and Industry said in a statement on Tuesday.
Outside of Asia, South African President Cyril Ramaphosa publicly disagreed with the 30% tariff rate imposed on his country.
In a statement posted on the social media platform X, Ramaphosa argued that the levy was “not an accurate representation of available trade data,” adding that 77% of US goods currently enter South Africa with zero tariff.
He affirmed that South Africa will continue its diplomatic efforts toward achieving a “more balanced and mutually beneficial trade relationship with the United States.”
The negotiation game: does effort even matter?
President Trump, in sharing screenshots of the letters detailing the new tariff rates, did allow room for further negotiations before the renewed August 1 deadline, indicating that the US could consider adjusting the new tariff levels based on the outcome of these talks.
However, some experts question whether these negotiation efforts will ultimately have a significant impact on the final outcome.
Deborah Elms, head of trade policy at the think tank Hinrich Foundation, observed that the results seem somewhat arbitrary.
“ASEAN members that worked hard to develop packages received almost all the same treatment as countries that either did not fly to DC or were not invited to meet,” Elms told CNBC.
She added that President Trump may still be targeting Asian nations out of “worries over regional supply chains that include content from China,” suggesting a broader strategic motivation behind the tariffs that may not be easily swayed by bilateral negotiations.
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