Taking a big decision, US President Donald Trump has postponed the tariffs that were to be implemented on July 9, till August 1. This step has been taken as part of an effort to reach a new trade agreement with many of America’s trading partner countries. The Trump administration has made it clear that they are preparing a separate trade plan for each country so that America can get the best deal. White House Press Secretary Caroline Levitt said that letters related to tariffs will be sent to 12 countries including South Korea and Japan.
These letters state that a 25% tax will be imposed on imports from South Korea and Japan from August 1. Trump also shared information about this decision on his social media platform “Truth Social”. Trump said in a letter to the leaders of South Korea and Japan that this 25% tax does not completely eliminate the trade deficit that America is facing with these countries.
He also clarified that if these countries manufacture the products in America itself, then no duty will be imposed on them. He also warned that if these countries increase tariffs on America in return, then America will also increase the duty in the same proportion. This decision is an extension of Trump’s ‘Liberation Day’ tariff policy announced in April. Already, 24% duty was imposed on Japan and 25% on South Korea. These tariffs are the highest duty imposed by the US in 100 years.
As soon as the first tariff was implemented, there was a sell-off on Wall Street, which caused instability in the US markets. After this, Trump gave a three-month extension, which has now been extended till August 1.