On the 29th, after visiting Scotland, President Donald Trump responded to reporters’ questions on his way back to the White House in Washington, DC. President Trump said, “The tariffs will not end tomorrow.”
President Trump has made it clear that there will be no extension to the trade negotiation deadline, and he announced a 25% tariff along with additional penalties on India. This is interpreted as a de facto “final ultimatum” to countries like South Korea, which are facing negotiation deadlines, to present satisfactory proposals.
On the 30th (local time), President Trump emphasized via his social media platform Truth Social, “The August 1 deadline is the August 1 deadline. It stands firm and is not extended. A BIG DAY for the USA!!!” He quickly followed up with another post stating, “August 1, A GREAT DAY for the USA!!!” Both posts were written in capital letters, suggesting that President Trump was intentionally expressing strong determination. President Trump often used capital letters for important words on social media.
In a post 23 minutes later, Trump directly criticized India. He attributed the U.S.’s relatively low trade with India to “excessively high Indian tariffs and cumbersome and obnoxious non-tariff barriers,” and mentioned India’s pro-Russia stance. “India has been buying the majority of its military equipment from Russia and has become one of the largest buyers of Russian energy alongside China when everyone wants Russia to stop the carnage in Ukraine.” Trump’s capitalized conclusion was that “Tariffs on India are fixed at 25% and additional penalties related to the above-mentioned issues will be added. Make America Great Again (MAGA)!” He also posted briefly, “We are seeing a massive trade deficit with India!!!” seemingly justifying the tariff increase by citing a $50 billion trade deficit recorded last year.
President Trump’s postings came at a time when South Korea was about to begin final negotiations. His intention may have been to apply more pressure, viewing South Korea as taking its time with the deadline, referencing the precedent set by Japan and the European Union (EU) with a 15% tariff.
A Wall Street Journal (WSJ) report analyzing U.S. Commerce Secretary Howard Lutnick’s visit to Scotland on the 27th to urge the South Korean government to propose the “best and final” offer is seen in a similar context. The WSJ reported, “Lutnick told South Korean officials, ‘You must bring it all when presenting the final offer to President Trump’ and emphasized why a new agreement with South Korea is necessary when multiple trade agreements have already been made with major partners like Japan, the EU, and the UK.”
There is speculation that there might be some dissatisfaction within the U.S. regarding the current proposals presented by South Korea. The South Korean government is reportedly considering significantly increasing its investment in the U.S. from the existing “100 billion+α.” While the “Korea-U.S. manufacturing cooperation” card proposed by South Korea is important, the prevailing analysis is that President Trump ultimately wants numbers that can be visibly shown to the American public.