U.S. tariffs to be imposed from August 1...South Korea, Japan, India, etc. 'gain time'

Secretary Lutnick: “Tariffs and deals are decided by Trump”

Extension of negotiation not specified for individual countries, but major trading partners expected to be included

For some countries that have not yet signed a trade agreement with the United States, U.S. tariffs will be imposed starting from August 1, not July 9. As a result, the negotiation period is expected to be extended by three more weeks.

Howard Lutnick, the U.S. Secretary of Commerce, told reporters aboard Air Force One en route to Washington with President Trump late on the 6th local time, that the U.S. tariffs are scheduled to take effect from August 1. This means some countries that have not yet concluded an agreement will have the option to extend negotiations by three weeks. Accordingly, South Korea, Japan, India, and the European Union (EU) are seeking to secure additional negotiation time.

Secretary Lutnick also stated, “Although tariffs take effect on August 1, the President is currently deciding the rates and deals.”

Over the past few weeks, President Donald Trump has maintained that for countries failing to reach trade agreements, reciprocal tariffs would revert to levels higher than those announced on April 2, starting July 9. However, Secretary Besant indicated that the large number of pending discussions is complicating the final stages further.

According to CNBC, President Trump’s executive order on April 9, confirming the July 9 implementation date for tariffs, has not yet been officially amended. Despite the President’s broad tariff authority, this order should be replaced by a new one setting August 1 as the effective date.

Secretary of the Treasury Scott Besant said that the U.S. is putting maximum pressure on its trade partners and that there has been “very good progress” in negotiations with the European Union. The EU consists of 27 countries and accounts for nearly one-fifth of overall U.S. merchandise trade.

Secretary Besant also suggested that the letter President Trump plans to send to trading partners this week would not indicate the final tariff rates for each country.

Besant stated that "the focus is on 18 major trading partners,” and despite “significant delays on the other side,” several key agreements are nearly finalized. So far, the Trump administration has only announced a limited trade deal with the United Kingdom, a truce with China, and a brief outline of the agreement with Vietnam as presented by Trump.

According to Bloomberg, U.S. officials held negotiations over the holidays with several nations including Japan, South Korea, the EU, and Vietnam. One of President Trump’s signature negotiating tactics is to issue unilateral threats when talks reach a crucial stage. It is unclear whether the letter he intends to send is genuine or meant to pressure negotiating parties at the last moment.

After President Trump announced the agreement with Vietnam last week, Vietnam’s foreign ministry revealed that negotiators are still coordinating specific details with the U.S. side.

An interim agreement is also expected with India, but New Delhi officials have recently adopted a tougher stance, threatening to impose tariffs on certain U.S. goods in retaliation for U.S. tariff hikes on cars and parts.

Like Japan, South Korea—which is also concerned about auto tariffs—is discussing the possibility of extending the deadlines with the U.S. side.

Japanese Prime Minister Shigeru Ishiba stated that Japan is preparing for every tariff scenario. Appearing on Fuji TV’s ‘Sunday News The Prime’ program the previous day, Prime Minister Ishiba said Japan is prepared to defend its interests “with a determined stance,” anticipating all possible situations.

Reported by Guest Journalist Kim Jung-ah kja@hankyung.com