WASHINGTON >> President Donald Trump revived his trade war threat with more than a dozen countries on Monday, telling them that they would face double-digit tariff rates on their exports as of Aug. 1 unless they agree to trade deals by then. The president targeted two of America’s closest foreign allies, Japan and South Korea, as well as Thailand, Indonesia, South Africa and Bosnia-Herzegovina.

Administration officials said that they would extend the timeline for dozens of other countries to sign deals with the United States or face tariffs, and that Trump was preparing to sign an executive order that would delay the stiff levies that were supposed to snap back on Wednesday.

Markets dropped after the news, as investors assessed the prospect of more trade conflict with some of America’s closest allies and largest trading partners. The S&P 500 ended Monday down 0.8%. Other major indexes also fell.

Letters going out

In nearly identical letters to the president of South Korea and the prime minister of Japan, Trump wrote that the countries would face a 25% tax on their exports next month, adding, “we have decided to move forward with you, but only with more balanced, and fair, TRADE.”

“Please understand that the 25% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country,” he wrote.A few hours later, Trump posted several more letters to social media detailing tariff rates that products from other foreign countries would face: 40% for exports from Myanmar and Laos, 30% for exports from South Africa and 25% for exports from Malaysia. He quickly followed with new tariff rates for Thailand, Bangladesh, Indonesia and other countries.

Karoline Leavitt, the White House press secretary, said in a briefing Monday that Trump would sign an executive order extending a pause on his steepest tariffs until Aug. 1. She also said the president planned to send letters to “approximately 12 other countries” about the rates they would be expected to pay by that date if they did not negotiate deals, then added that even more countries could expect to receive the letters soon.

April action, then pause

Trump announced a 10% “baseline” tariff on all U.S. imports in April, as well as higher tariffs on goods from about 60 countries. After the announcement threw stock and bond markets into turmoil, the president temporarily paused the tariffs, urging countries to strike trade deals with the United States instead.

Leavitt said that the president was making progress on that front, and that his phone was ringing “off the hook from world leaders all the time who are begging him to come to a deal.”

Deals in the works

Administration officials also have indicated that Trump will also announce several trade deals this week. The United States has been nearing an initial trade framework with India, and officials from the European Union have also seemed increasingly confident that they will be able to reach an arrangement to avoid tariffs. Other countries — including Indonesia, Pakistan, Taiwan and Switzerland — have also been angling for trade deals.

Countries that have so far agreed to trade arrangements, even preliminary handshake agreements, have qualified for lower tariff rates than those Trump threatened them with in April.

South Korea and Japan

Both Japan and South Korea are close American allies, but negotiations with them have been proceeding more slowly than U.S. officials want. That’s in part because Japan and South Korea have been having their own elections, and because Trump is still imposing or threatening other tariffs on their major exports, including cars, steel and electronics. The Japanese and Korean governments have been hesitant to offer Trump concessions while still being hit with high levies on some of their most important industries.

About half of Japanese and Korean exports to the United States could be covered by other tariffs Trump has imposed or is planning to introduce on critical industries, including cars, electronics, steel and pharmaceuticals, according to calculations by Capital Economics.

Last year, the United States imported 1.5 million passenger cars and light trucks from South Korea and 1.4 million from Japan. The countries are the No. 2 and No. 3 sources of auto imports for the United States after Mexico.

Wendy Cutler, a vice president of the Asia Society Policy Institute, said that both Japan and Korea were close partners on economic security matters and cooperate on industries like shipbuilding, semiconductors, critical minerals and energy.

Companies from both countries have made significant manufacturing investments in the United States in recent years, and both countries are important markets for U.S. businesses, including beef, pork, medical devices and planes, she said.