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President Trump introduced a brand new wave of tariffs focusing on Japan, South Korea, and 12 different nations by letters despatched on Monday, marking the primary implementation of his “Liberation Day” tariffs after a 90-day pause. Japan and South Korea every face 25% tariffs, whereas different international locations together with Bangladesh, Cambodia, Indonesia, and Thailand will see levies starting from 25% to 40%. The tariffs, initially scheduled for Wednesday, have been delayed till August 1 to permit for additional negotiations.
The announcement comes after Mr. Trump’s April tariff proposals have been paused for 90 days, throughout which his administration efficiently negotiated offers with Britain and Vietnam that lowered their tariff publicity. Nevertheless, talks with most different nations failed to provide agreements, resulting in the implementation of those penalties.
Wall Road reacted negatively to the information, with the Dow Jones falling 400 factors and each the Nasdaq and S&P 500 dropping almost 1%. The tariffs significantly threaten the export-heavy economies of South Korea and Japan, two key U.S. allies within the Indo-Pacific area, highlighting Mr. Trump’s powerful stance on commerce no matter political relationships.
White Home press secretary Karoline Leavitt defended the delay, stating it gives house for continued negotiations and that different international locations will take the president significantly regardless of the postponement. Nevertheless, analysts warn that the delays may undermine the president’s credibility and make different nations extra prone to wait out his presidency somewhat than negotiate.
The tariffs are designed to deal with what President Trump views as unfair commerce deficits, the place international locations promote considerably extra to the U.S. than they buy from American producers.
Mr. Trump characterizes these levies as the price of accessing the American client market and has indicated he would take into account changes if international locations cut back their very own commerce boundaries.
South Korea has already introduced plans to accentuate negotiations earlier than the August 1 deadline to deal with Mr. Trump’s considerations. The administration can be pursuing talks with China and India, with some international locations doubtlessly securing last-minute offers to cut back their tariff publicity.
Moreover, President Trump warned BRICS nations and their allies of an extra 10% tariff for aligning with “anti-American insurance policies.” The BRICS bloc, assembly in Rio de Janeiro, has criticized unilateral tariff measures, probably referencing Mr. Trump’s insurance policies.
Economists warn these tariffs may enhance client costs, significantly for back-to-school buying, and should pressure overseas relations at a time when U.S. management is required on Ukraine, the Center East and China. The tariffs are paid by importers, not overseas governments, and prices are sometimes handed to shoppers by larger costs.
Read more: Trump hits South Korea, Japan and others with 25% tariffs
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