US President Donald Trump has opened a new phase in the trade war he launched this year, telling partners, from powerhouse suppliers such as Japan and South Korea to minor players, that they face sharply higher tariffs from 1 August.
The imposition of a levy of 25% on US importers of all goods from key allies Japan and South Korea rattled Wall Street, though markets in Asia were taking the news in their stride.
In letters so far to 14 countries, Mr Trump hinted at opportunities for additional negotiations, even while warning that reprisals would draw a like-for-like response.
"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% that we charge," Mr Trump told Japan and South Korea in letters released on his Truth Social platform.
The higher tariffs take effect from 1 August, and notably will not combine with previously announced sectoral tariffs, such as those on automobiles and steel and aluminium.
Countries have been under pressure to conclude deals with the US after Mr Trump unleashed a global trade war in April that roiled financial markets and sent policymakers scrambling to protect their economies.
Watch: Donald Trump said he has delayed the negotiating deadline to 1 August
Asked if the deadline was firm, Mr Trump replied, "I would say firm, but not 100% firm. If they call up and they say we'd like to do something a different way, we're going to be open to that."
EU still aims to reach trade deal with US
EU sources familiar with the matter said the bloc will not be receiving a letter setting out higher tariffs.
The EU still aims to reach a trade deal by tomorrow after European Commission President Ursula von der Leyen and Mr Trump had a "good exchange," a commission spokesperson said.
The EU has been torn over whether to push for a quick and light trade deal or leverage its economic clout for a better outcome.
Meanwhile, Tánaiste and Minister for Foreign Affairs Simon Harris said that the three-week extension for the trade deal negotiation was a "clear indication" that Mr Trump "understands there is a need for trade".
Speaking ahead of a Cabinet meeting, Mr Harris said he remains concerned about the pharmaceutical industry, and that there's a "lot of work to be done".
Minister for Agriculture Martin Heydon has said it is unlikely that tariffs will be zero for zero between the US and EU.
Speaking on RTÉ's Morning Ireland, he said: "It might be for certain products."
"We have products like Irish butter, the second biggest market share for butter in all of the United States, a phenomenal success story - currently has a tariff of 16%," he said.
"So any additional tariffs is on top of that, and that is challenging in that space, but we are very lucky that we export to 180 countries around the world.
"We're not just depending on one market. We continue to grow our market opportunities in every market across the world."
Ibec's Executive Director for Lobbying and Influence Fergal O'Brien has said that the US could "get hooked" on the revenue that tariffs produce for its economy.
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Speaking on RTÉ's Morning Ireland, he said that the Irish economy has been really resilient in this last six months in many ways, despite all of the challenges.
He said that for most products, the weakness of the dollar has been on the same scale as the tariffs.
"So, it's that double whammy on top of tariffs that were already there," he said.
"We need to start getting prepared that this could be sticky and we need to be taking real, practical, tangible measures now that are going to protect us," Mr O'Brien added.
Mr Trump said the US would impose tariffs of 25% on goods from Tunisia, Malaysia and Kazakhstan, with levies of 30% on South Africa, Bosnia and Herzegovina, climbing to 32% on Indonesia, 35% on Serbia and Bangladesh, 36% on Cambodia and Thailand and 40% on Laos and Myanmar.
A deal with India was close, Mr Trump added.
Japan says progress made on avoiding higher tariffs
Japanese Prime Minister Shigeru Ishiba said some progress had been made on avoiding higher tariffs, of up to 35%, that Mr Trump had suggested recently.
"We have received a proposal from the United States to swiftly proceed with negotiations towards the newly set 1 August deadline, and that depending on Japan's response, the content of the letter could be revised," Mr Ishiba told a cabinet meeting.
South Korea said it planned to step up trade talks with the US, and considers Mr Trump's latest plan as effectively extending a grace period on adopting reciprocal tariffs.
Read more: How Trump's trade war is upending the global economy
Thailand said it was confident it can get a competitive tariff similar to those on other countries.
In neighbouring Malaysia, the trade ministry said it acknowledged US concerns on trade imbalances and market access, while believing that constructive engagement and dialogue remained the best path forward.
In Indonesia, Southeast Asia's largest economy, an official said Jakarta still had room to negotiate on tariffs, and its top negotiator would meet US trade representatives in Washington.
A Bangladesh team in Washington was scheduled to have further trade talks tomorrow, an official said.
The US is the main export market for Bangladesh's ready-made garments industry, which accounts for more than 80% of its export earnings and employs 4 million people.
"This is absolutely shocking news for us," Mahmud Hasan Khan, president of Bangladesh Garment Manufacturers and Exporters Association said: "We were really hoping the tariffs would be somewhere between 10-20%.
"This will hurt our industry badly."
South African President Cyril Ramaphosa said the 30% US tariff rate was unjustified, since 77% of US goods face no tariffs in his country.
Mr Ramaphosa's spokesperson said his government would continue to engage with the US.
Market drop
US stocks fell in response to yesterday's news, with the S&P closing down about 0.8%, although Asian share markets were mostly resilient.
US Treasury Secretary Scott Bessent said he expected several trade announcements in the next 48 hours, adding that his inbox was full of countries' last-ditch offers.
Only two deals have been struck so far, with the UK and Vietnam, while the US and China agreed in June on a framework covering tariff rates.
China has until 12 August to reach a deal with the White House to prevent Mr Trump from reinstating additional import curbs.
It warned the US against reinstating tariffs on its goods, and said it could retaliate against countries striking deals with the US to cut China out of supply chains.
Mr Trump also threatened leaders of developing nations in the BRICS grouping meeting in Brazil, with an additional 10% tariff if they adopt "anti-American" policies.
The bloc includes Brazil, Russia, India and China among others.
