US President Donald Trump has postponed the imposition of higher tariffs on imports, extending the deadline from July 9 to August 1. The White House confirmed that letters were sent to 14 countries including Japan and South Korea outlining new duties, with rates ranging from 25 percent to 40 percent, BBC reported.

Japan and South Korea face 25 percent tariffs, while others, including Myanmar, Laos, Thailand, and Cambodia, are set to face higher rates. Trump stated the August deadline is “firm, but not 100 percent firm,” leaving room for negotiation.

Economists see the move as part of Trump’s broader trade strategy, aimed at pressuring countries into deals. However, markets responded with caution, as major US indexes slipped and Toyota’s US-listed shares dropped 4 percent. Critics warn the tariffs could raise consumer prices and disrupt global trade flows, despite Trump’s claim that they will boost American manufacturing and jobs, according to BBC.