“These unsustainable trade deficits are a major threat to our economy and, indeed, our national security,”

14 Countries Face Steep U.S. Tariffs; Myanmar and Laos Hit Hardest, Trump Hints at a Deal with India Latest News:

United States President Donald Trump has announced steep tariffs on 14 countries, with Myanmar and Laos facing the highest rate of 40% each.
Other countries affected include Thailand and Cambodia with a 36% tariff, Serbia and Bangladesh at 35%, Indonesia at 32%, Bosnia and Herzegovina and the Republic of South Africa at 30%, and Tunisia, Kazakhstan, Malaysia, the Republic of Korea, and Japan facing the lowest tariff of 25%. These tariffs will apply to all products sent to the United States, separate from all existing sectoral tariffs.

In nearly identical letters addressed to the leaders of these 14 countries, President Trump emphasized that the move reflects the strength and commitment of the U.S. to its trading relationships—despite the significant trade deficits the U.S. has incurred with these nations.
“Nevertheless, we have decided to move forward with you, but only with more balanced and fair TRADE. Therefore, we invite you to participate in the extraordinary economy of the United States, the Number One Market in the World, by far,” the letter reads.

The new tariffs will come into effect starting August 1. The letter also warns that any attempt to transship goods to evade higher tariffs will result in those goods being subjected to the same higher tariff.
However, the U.S. has offered a way forward.  “There will be no Tariff if [your country], or companies within your country, decide to build or manufacture products within the United States. In fact, we will do everything possible to get approvals quickly, professionally, and routinely —in other words, in a matter of weeks.”

In a stern warning, the letter also noted that if  for any reason, any country decide to raise your tariffs, then whatever the number the country chooses to raise them by will be added onto the tariff that the United States charges the country.
President Trump justified the move by stating that these tariffs are necessary to correct many years of unfair tariff and non-tariff policies and trade barriers. “These unsustainable trade deficits are a major threat to our economy and, indeed, our national security,” the letter read.

The letter concludes with a conditional offer, “If you wish to open your heretofore closed trading markets to the United States and eliminate your tariff and non-tariff policies and trade barriers, we will, perhaps, consider an adjustment to this letter. These tariffs may be modified, upward or downward, depending on our relationship with your country. You will never be disappointed with the United States of America.”

President Trump also hinted that the U.S. is close to finalizing a trade agreement with India. “We are close to making a deal with India. We've made a deal with the United Kingdom. We've made a deal with China. Others we met with, and we don't think we're going to be able to make a deal, so we just send them a letter. We're sending out letters to various countries telling them how much tariffs they have to pay. Some will maybe adjust a little bit depending on if they have a cause—we're not going to be unfair about it,” he said.

Speaking to reporters later on Monday, Trump said the August 1 deadline was “firm” but not “100 percent firm” according to Al Jazeera report.
“If they call up and they say we’d like to do something a different way, we’re going to be open to that,” he said.
All 14 countries, according to the report, many of which have highly export-reliant economies, had previously been subject to the baseline tariff of 10 percent.

Japan’s Prime Minister Shigeru Ishiba called the tariff on his country “truly regrettable”. However He said that the Japan would continue negotiations towards a mutually beneficial agreement.
South Korea’s Ministry of Trade, Industry and Energy stated that it would step up negotiations ahead of the August 1 deadline to “reach a mutually beneficial negotiation result so as to swiftly address uncertainties stemming from tariffs”.

Lawrence Loh, the director of the Centre for Governance and Sustainability at the National University of Singapore Business School, said are Asian countries struggle to present a united front against Trump’s threats because of their diverse trade profiles and differing geopolitical interests.

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