WASHINGTON/TOKYO — Japan and South Korea are ramping up last-minute negotiations with the United States to reduce the impact of new tariffs set to take effect on August 1, 2025, under the latest directive from U.S. President Donald Trump.
The U.S. administration has announced sweeping new import tariffs, targeting 14 countries. Japan and South Korea are among those facing a 25% duty, while others such as Laos and Myanmar will see tariffs as high as 40%. With less than a month to respond, affected nations are scrambling to reach compromises and protect key export sectors.
Japan Pushes for Auto Sector Relief
Japan’s chief trade negotiator, Ryosei Akazawa, said on Tuesday that the country is focused on safeguarding its vital automobile industry. Akazawa recently held a 40-minute call with U.S. Commerce Secretary Howard Lutnick, during which both parties agreed to continue talks.
However, Akazawa made it clear that Japan will not offer concessions in its agricultural sector — a politically sensitive area — just to secure an early trade deal.
South Korea Seeks Mutually Beneficial Outcome
South Korea has also announced plans to intensify discussions with Washington. Officials emphasized the need for a “mutually beneficial result” and indicated that talks will continue over the coming weeks.
When asked if the August 1 deadline was final, President Trump replied, “I would say firm, but not 100% firm,” suggesting that there may still be room for negotiation if viable alternatives are proposed.
EU Aims to Finalize Deal Before Deadline
The European Union, America’s largest bilateral trade partner, is also negotiating with the U.S. ahead of the deadline. Sources familiar with the talks said a deal is close, with discussions focusing on rebalancing trade and providing targeted concessions in areas like aerospace, medical devices, and alcoholic beverages.
Global Trade Uncertainty Grows
According to Pamela Coke-Hamilton, Executive Director of the International Trade Centre, the proposed tariffs are creating a climate of instability. “This move actually extends the period of uncertainty, undermining long-term investment and business contracts,” she said during a press briefing in Geneva.
U.S. Tariff Breakdown: Who’s Affected
In addition to Japan and South Korea, the U.S. will impose tariffs as follows:
- 25%: Tunisia, Malaysia, Kazakhstan
- 30%: South Africa, Bosnia and Herzegovina
- 32%: Indonesia
- 35%: Serbia, Bangladesh
- 36%: Cambodia, Thailand
- 40%: Laos, Myanmar
These tariffs are part of a broader strategy to reshape trade relations and boost domestic industries.
Bangladesh’s Garment Sector in Shock
Bangladesh, which relies heavily on garment exports to the U.S., has expressed deep concern. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) says the industry, which employs over 4 million people and contributes more than 80% of national exports, could be devastated.
“This is absolutely shocking news for us,” said BGMEA President Mahmud Hasan Khan. “We were really hoping the tariffs would be between 10-20%. This will hurt our industry badly.” A trade delegation from Bangladesh is scheduled to meet with U.S. officials in Washington this week.
Market Reaction
Despite the tariff announcement, global markets showed limited response, as investors await further developments and clarity on possible trade deals.
Outlook
With the August 1 deadline fast approaching, countries impacted by the new U.S. tariffs are in a race against time to safeguard their economies. Whether these negotiations will yield compromises or escalate tensions further remains uncertain — but the stakes are high for global trade.
