Trump’s tariff letters hit Asia hardest as global economic instability continues

Trump’s tariff letters hit Asia hardest as global economic instability continues
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US President Donald Trump has issued tariff warning letters to 14 countries, mainly in Asia, threatening higher import tariffs starting August 1 unless trade deals are reached, Arab News reported. This follows a 90-day tariff delay announced in April.

Countries with large trade surpluses with the US are primary targets, including Japan, South Korea, Thailand, and Indonesia. South Korea faces a 25 percent tariff hike on remaining exports, despite ongoing talks with the US. Japan is confronting a 25 percent tariff on its key auto sector and other goods, with Prime Minister Shigeru Ishiba expressing regret but defending Japan’s firm stance on protecting agriculture.

Indonesia and Thailand remain optimistic about negotiations, with Indonesia agreeing to import US wheat and planning more agricultural and energy purchases. Thailand aims to reduce its trade surplus and increase US market access, including potential Boeing plane orders.

Other affected nations include Malaysia, Bangladesh, Cambodia, and several others, all engaged in talks to reach balanced, mutually beneficial trade agreements and avoid steep tariffs.