South Korea said it planned to intensify trade talks with the United States and considered U.S. President Donald Trump's plan for a 25% tariff from August 1 as effectively extending a grace period on implementing reciprocal tariffs.

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.

US President Donald Trump has opened a new phase in the trade war he launched this year, telling partners, from powerhouse suppliers such as Japan and South Korea to minor players, that they face sharply higher tariffs from 1 August.