Later, Trump announced 25% tariffs on Malaysia and Kazakhstan, 30% on South Africa and 40% on Laos and Myanmar. The rate for South Korea is the same as Trump initially announced on April 2, while the rate for Japan is one point higher.

South Korean President Lee Jae Myung says his administration is doing its best to reach a tariff deal with the US, as Seoul's top negotiator heads to Washington again this weekend. Mr Lee held his first media conference to mark 30 days in office on Jul 3.

Trump warned Japan and South Korea against retaliation by increasing their own import taxes, saying that the US would further increase the tariffs over and above the already imposed 25 percent.

The European Union and South Korea said on Monday they were working on trade deals with U.S. President Donald Trump that would soften the blow from looming tariffs as Washington threatens to impose hefty duties from August 1.

South Korea’s top trade envoy said Monday that reaching an "in-principle" trade agreement with the United States by the August 1 deadline is possible, and indicated that Seoul may be willing to offer increased access to its agricultural markets,