US President Donald Trump has been posting letters on his social media platform, Truth Social, since yesterday to inform trading partners of the reciprocal tariff rates that will come into effect from August 1. Before posting letters, he announced that countries aligning themselves with the “anti-American policies of BRICS” would face an additional 10 per cent tariff, with a stark warning that there would be no “exceptions”.
The first two letters were for Japan and South Korea and revealed that the US would be imposing a tariff rate of 25 per cent.
The third letter was addressed to the Prime Minister of Malaysia, followed by letters to the heads of state of other countries, including Kazakhstan, South Africa, Laos, Myanmar, Tunisia, Indonesia, Thailand, Bangladesh, Serbia, Cambodia, and Bosnia & Herzegovina.
List of countries and tariff rates
1. Bangladesh: 35%
2. Bosnia and Herzegovina: 30%
3. Cambodia: 36%
4. Indonesia: 32%
5. Japan: 25%
6. Kazakhstan: 25%
7. Lao People’s Democratic Republic: 40%
8. Malaysia: 25%
9. Myanmar: 40%
10. Republic of Serbia: 35%
11. Republic of Tunisia: 25%
12. South Africa: 30%
13. South Korea: 25%
14. Thailand: 36%
What did Trump’s tariff letters say?
All the letters start with the words: “It is a great honour for me to send you this letter in that it demonstrates the strength and commitment of our trading relationship and the fact that the United States of America has agreed to continue, despite having a significant trade deficit with your great Country.”
They then state that the US has decided to “move forward”, but 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.”
For Bosnia and Herzegovina, the letter said that the relationship has been “far from reciprocal”.
The letters started on the same note for Thailand, Cambodia, Serbia, Bangladesh, Indonesia, Tunisia, Myanmar, Laos, South Africa, Kazakhstan, Malaysia, Korea and Japan.
Trump, in his letters, argued that there would be no need for reciprocal tariffs if the trading partners agreed to “build or manufacture” products in the US. He added, “In fact, we will do everything possible to get approvals quickly, professionally, and routinely – In other words, in a matter of weeks.”
The letters further warned, “If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by will be added onto the 25% that we charge.”
The President also said that these tariffs are necessary to correct the “unsustainable Trade Deficits against the United States”.
“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,” Trump closed his letters with these lines.