Trump hits Japan, South Korea with 25 pct tariffs
Trump also announced the US will impose 25 per cent tariffs on Malaysia and Kazakhstan, 30 per cent on South Africa and 40 per cent on Laos and Myanmar.
"If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25 per cent that we charge," Trump said in letters to the leaders of South Korea and Japan, which he posted on his Truth Social platform.
The rate for South Korea is the same that Trump initially announced on April 2, while the rate for Japan is one point higher than first announced.
Trump a week later capped all of the so-called reciprocal tariffs at 10 per cent until July 9 to allow for negotiations.
There was no immediate response from the Japanese or South Korean embassies on the announcement.
Only two agreements have so far been reached, with Britain and Vietnam.
US stocks fell in response, the latest market ruction since Trump unleashed a global trade war on his return to office in January.
The S&P 500 on Monday was down nearly 1.0 per cent, its biggest drop in three weeks.
His moves have repeatedly roiled financial markets and sent policymakers scrambling to protect their economies.
US-listed shares of Japanese automotive companies fell, with Toyota Motor down 4.1 per cent in early afternoon trading and Honda Motor off by 3.8 per cent.
US Treasury Secretary Scott Bessent said earlier on Monday he expected to make several trade announcements in the next 48 hours, adding that his inbox was full of last-ditch offers from countries to clinch a tariff deal before a July 9 deadline.
Countries have scrambled to hammer out deals before the Wednesday deadline.
South Korea and Indonesia dispatched representatives to Washington, while Thailand submitted a new trade proposal offering zero tariffs on many US goods.
Bessent did not say which countries could get deals and what they might contain.
Trump has kept much of the world guessing on the outcome of months of talks with countries hoping to avoid the hefty tariff hikes he has threatened.
"We've had a lot of people change their tune in terms of negotiations. So my mailbox was full last night with a lot of new offers, a lot of new proposals," Bessent said in an interview with CNBC.
The European Union will not be receiving a letter setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday.
For its part, the European Union still aims to reach a trade deal by July 9 after European Commission President Ursula von der Leyen and Trump had a "good exchange," a Commission spokesperson said.
It was not immediately clear, however, whether there had been a meaningful breakthrough in talks to stave off tariff hikes on the United States' largest trading partner.
Adding to the pressure, Trump threatened to impose a 17 per cent tariff on EU food and agriculture exports, it emerged last week.
The EU has been torn over whether to push for a quick and light trade deal or back its own economic clout in trying to negotiate a better outcome.
It had already dropped hopes for a comprehensive trade agreement before the July deadline.
"We want to reach a deal with the US We want to avoid tariffs," the spokesperson told reporters at a daily briefing.
"We want to achieve win-win outcomes, not lose-lose outcomes."
Without a preliminary agreement, broad US tariffs on most imports would rise from their current 10 per cent to the rates set out by Trump on April 2.
In the EU's case, that would be 20 per cent.
Von der Leyen also held talks with the leaders of Germany, France and Italy at the weekend, Germany said.
President Donald Trump says the US will impose a 25 per cent tariff on imports from Japan and South Korea beginning August 1 as he unveiled the first two of what he has said will be a wave of letters to trading partners outlining the new levies they face.
Trump also announced the US will impose 25 per cent tariffs on Malaysia and Kazakhstan, 30 per cent on South Africa and 40 per cent on Laos and Myanmar.
"If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25 per cent that we charge," Trump said in letters to the leaders of South Korea and Japan, which he posted on his Truth Social platform.
The rate for South Korea is the same that Trump initially announced on April 2, while the rate for Japan is one point higher than first announced.
Trump a week later capped all of the so-called reciprocal tariffs at 10 per cent until July 9 to allow for negotiations.
There was no immediate response from the Japanese or South Korean embassies on the announcement.
Only two agreements have so far been reached, with Britain and Vietnam.
US stocks fell in response, the latest market ruction since Trump unleashed a global trade war on his return to office in January.
The S&P 500 on Monday was down nearly 1.0 per cent, its biggest drop in three weeks.
His moves have repeatedly roiled financial markets and sent policymakers scrambling to protect their economies.
US-listed shares of Japanese automotive companies fell, with Toyota Motor down 4.1 per cent in early afternoon trading and Honda Motor off by 3.8 per cent.
US Treasury Secretary Scott Bessent said earlier on Monday he expected to make several trade announcements in the next 48 hours, adding that his inbox was full of last-ditch offers from countries to clinch a tariff deal before a July 9 deadline.
Countries have scrambled to hammer out deals before the Wednesday deadline.
South Korea and Indonesia dispatched representatives to Washington, while Thailand submitted a new trade proposal offering zero tariffs on many US goods.
Bessent did not say which countries could get deals and what they might contain.
Trump has kept much of the world guessing on the outcome of months of talks with countries hoping to avoid the hefty tariff hikes he has threatened.
"We've had a lot of people change their tune in terms of negotiations. So my mailbox was full last night with a lot of new offers, a lot of new proposals," Bessent said in an interview with CNBC.
The European Union will not be receiving a letter setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday.
For its part, the European Union still aims to reach a trade deal by July 9 after European Commission President Ursula von der Leyen and Trump had a "good exchange," a Commission spokesperson said.
It was not immediately clear, however, whether there had been a meaningful breakthrough in talks to stave off tariff hikes on the United States' largest trading partner.
Adding to the pressure, Trump threatened to impose a 17 per cent tariff on EU food and agriculture exports, it emerged last week.
The EU has been torn over whether to push for a quick and light trade deal or back its own economic clout in trying to negotiate a better outcome.
It had already dropped hopes for a comprehensive trade agreement before the July deadline.
"We want to reach a deal with the US We want to avoid tariffs," the spokesperson told reporters at a daily briefing.
"We want to achieve win-win outcomes, not lose-lose outcomes."
Without a preliminary agreement, broad US tariffs on most imports would rise from their current 10 per cent to the rates set out by Trump on April 2.
In the EU's case, that would be 20 per cent.
Von der Leyen also held talks with the leaders of Germany, France and Italy at the weekend, Germany said.
President Donald Trump says the US will impose a 25 per cent tariff on imports from Japan and South Korea beginning August 1 as he unveiled the first two of what he has said will be a wave of letters to trading partners outlining the new levies they face.
Trump also announced the US will impose 25 per cent tariffs on Malaysia and Kazakhstan, 30 per cent on South Africa and 40 per cent on Laos and Myanmar.
"If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25 per cent that we charge," Trump said in letters to the leaders of South Korea and Japan, which he posted on his Truth Social platform.
The rate for South Korea is the same that Trump initially announced on April 2, while the rate for Japan is one point higher than first announced.
Trump a week later capped all of the so-called reciprocal tariffs at 10 per cent until July 9 to allow for negotiations.
There was no immediate response from the Japanese or South Korean embassies on the announcement.
Only two agreements have so far been reached, with Britain and Vietnam.
US stocks fell in response, the latest market ruction since Trump unleashed a global trade war on his return to office in January.
The S&P 500 on Monday was down nearly 1.0 per cent, its biggest drop in three weeks.
His moves have repeatedly roiled financial markets and sent policymakers scrambling to protect their economies.
US-listed shares of Japanese automotive companies fell, with Toyota Motor down 4.1 per cent in early afternoon trading and Honda Motor off by 3.8 per cent.
US Treasury Secretary Scott Bessent said earlier on Monday he expected to make several trade announcements in the next 48 hours, adding that his inbox was full of last-ditch offers from countries to clinch a tariff deal before a July 9 deadline.
Countries have scrambled to hammer out deals before the Wednesday deadline.
South Korea and Indonesia dispatched representatives to Washington, while Thailand submitted a new trade proposal offering zero tariffs on many US goods.
Bessent did not say which countries could get deals and what they might contain.
Trump has kept much of the world guessing on the outcome of months of talks with countries hoping to avoid the hefty tariff hikes he has threatened.
"We've had a lot of people change their tune in terms of negotiations. So my mailbox was full last night with a lot of new offers, a lot of new proposals," Bessent said in an interview with CNBC.
The European Union will not be receiving a letter setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday.
For its part, the European Union still aims to reach a trade deal by July 9 after European Commission President Ursula von der Leyen and Trump had a "good exchange," a Commission spokesperson said.
It was not immediately clear, however, whether there had been a meaningful breakthrough in talks to stave off tariff hikes on the United States' largest trading partner.
Adding to the pressure, Trump threatened to impose a 17 per cent tariff on EU food and agriculture exports, it emerged last week.
The EU has been torn over whether to push for a quick and light trade deal or back its own economic clout in trying to negotiate a better outcome.
It had already dropped hopes for a comprehensive trade agreement before the July deadline.
"We want to reach a deal with the US We want to avoid tariffs," the spokesperson told reporters at a daily briefing.
"We want to achieve win-win outcomes, not lose-lose outcomes."
Without a preliminary agreement, broad US tariffs on most imports would rise from their current 10 per cent to the rates set out by Trump on April 2.
In the EU's case, that would be 20 per cent.
Von der Leyen also held talks with the leaders of Germany, France and Italy at the weekend, Germany said.
President Donald Trump says the US will impose a 25 per cent tariff on imports from Japan and South Korea beginning August 1 as he unveiled the first two of what he has said will be a wave of letters to trading partners outlining the new levies they face.
Trump also announced the US will impose 25 per cent tariffs on Malaysia and Kazakhstan, 30 per cent on South Africa and 40 per cent on Laos and Myanmar.
"If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25 per cent that we charge," Trump said in letters to the leaders of South Korea and Japan, which he posted on his Truth Social platform.
The rate for South Korea is the same that Trump initially announced on April 2, while the rate for Japan is one point higher than first announced.
Trump a week later capped all of the so-called reciprocal tariffs at 10 per cent until July 9 to allow for negotiations.
There was no immediate response from the Japanese or South Korean embassies on the announcement.
Only two agreements have so far been reached, with Britain and Vietnam.
US stocks fell in response, the latest market ruction since Trump unleashed a global trade war on his return to office in January.
The S&P 500 on Monday was down nearly 1.0 per cent, its biggest drop in three weeks.
His moves have repeatedly roiled financial markets and sent policymakers scrambling to protect their economies.
US-listed shares of Japanese automotive companies fell, with Toyota Motor down 4.1 per cent in early afternoon trading and Honda Motor off by 3.8 per cent.
US Treasury Secretary Scott Bessent said earlier on Monday he expected to make several trade announcements in the next 48 hours, adding that his inbox was full of last-ditch offers from countries to clinch a tariff deal before a July 9 deadline.
Countries have scrambled to hammer out deals before the Wednesday deadline.
South Korea and Indonesia dispatched representatives to Washington, while Thailand submitted a new trade proposal offering zero tariffs on many US goods.
Bessent did not say which countries could get deals and what they might contain.
Trump has kept much of the world guessing on the outcome of months of talks with countries hoping to avoid the hefty tariff hikes he has threatened.
"We've had a lot of people change their tune in terms of negotiations. So my mailbox was full last night with a lot of new offers, a lot of new proposals," Bessent said in an interview with CNBC.
The European Union will not be receiving a letter setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday.
For its part, the European Union still aims to reach a trade deal by July 9 after European Commission President Ursula von der Leyen and Trump had a "good exchange," a Commission spokesperson said.
It was not immediately clear, however, whether there had been a meaningful breakthrough in talks to stave off tariff hikes on the United States' largest trading partner.
Adding to the pressure, Trump threatened to impose a 17 per cent tariff on EU food and agriculture exports, it emerged last week.
The EU has been torn over whether to push for a quick and light trade deal or back its own economic clout in trying to negotiate a better outcome.
It had already dropped hopes for a comprehensive trade agreement before the July deadline.
"We want to reach a deal with the US We want to avoid tariffs," the spokesperson told reporters at a daily briefing.
"We want to achieve win-win outcomes, not lose-lose outcomes."
Without a preliminary agreement, broad US tariffs on most imports would rise from their current 10 per cent to the rates set out by Trump on April 2.
In the EU's case, that would be 20 per cent.
Von der Leyen also held talks with the leaders of Germany, France and Italy at the weekend, Germany said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Perth Now
a few seconds ago
- Perth Now
Trump might meet with Putin as soon as next week
US President Donald Trump plans to meet in person with Russian President Vladimir Putin as early as next week, according to media reports. Trump plans to meet with Putin and Ukrainian President Volodymyr Zelenskiy, the New York Times reported, citing two sources. The newspaper added that the plans were disclosed in a call with European leaders on Wednesday. The White House did not immediately respond to the report but earlier on Wednesday Trump acknowledged that he spoke with European leaders after US envoy Steve Witkoff's "highly productive" meeting with Putin in Russia. The meeting came two days before a deadline set by Trump for Russia to agree to peace in Ukraine or face new sanctions. Trump has been increasingly frustrated with Putin over the lack of progress towards peace and has threatened to impose heavy tariffs on countries that buy Russian exports. A White House official said that while the meeting had gone well and Moscow was eager to continue engaging with the United States, secondary sanctions that Trump has threatened against countries doing business with Russia were still expected to be implemented on Friday. No details were provided. "My Special Envoy, Steve Witkoff, just had a highly productive meeting with Russian President Vladimir Putin. Great progress was made!" Trump said in a post on Truth Social. "Everyone agrees this War must come to a close, and we will work towards that in the days and weeks to come." A Kremlin aide earlier on Wednesday said Witkoff held "useful and constructive" talks with Putin on Wednesday. The two met for around three hours on a last-minute mission to seek a breakthrough in the 3.5-year war that began with Russia's full-scale invasion of Ukraine. Kremlin foreign policy aide Yuri Ushakov said the two sides had exchanged "signals" on the Ukraine issue and discussed the possibility of developing strategic cooperation between Moscow and Washington, but declined to give more details until Witkoff had reported back to Trump. Ukrainian President Volodymyr Zelenskiy said he believed pressure had worked on Russia and Moscow was now more amenable to a ceasefire. "It seems that Russia is now more inclined to a ceasefire. The pressure on them works. But the main thing is that they do not deceive us in the details – neither us nor the US," Zelenskiy said in his nightly address. Writing separately on the X social media platform, Zelenskiy said he had discussed Witkoff's visit to Russia with Trump, adding that he had reiterated Ukraine's support for a just peace and its continued determination to defend itself. "Ukraine will definitely defend its independence. We all need a lasting and reliable peace. Russia must end the war that it itself started," Zelenskiy said, adding that European leaders had joined the call with Trump. Trump took a key step toward punitive measures on Wednesday when he imposed an additional 25 per cent tariff on imports from India, citing New Delhi's continued imports of Russian oil. No similar order was signed for China, which also imports Russian oil. The new measure raises tariffs on some Indian goods to as high as 50 per cent — among the steepest faced by any US trading partner.
ABC News
a few seconds ago
- ABC News
Donald Trump says he wants to stop Vladimir Putin's 'war machine' but his sanctions–tariffs combo could backfire
Donald Trump is searching for a way to end the bloodshed in Ukraine and the US president's latest plan involves combining two of his favourite punishments: more sanctions, more tariffs. This time, it's where they're going — far from the front lines — that's important. And some analysts are warning it could backfire. After weeks of bluster, things got real on Wednesday with an executive order for an additional 25 per cent levies on all US imports from India. Combined with the 25 per cent "reciprocal" tariff announced last week, it becomes a 50 per cent tariff on a country Trump said was fuelling the "war machine" by buying billions of dollars of Russian oil. The White House has flagged more announcements in the coming days. Trump is trying to dig an economic hole around Moscow so big it forces his counterpart there, Vladimir Putin, back to the negotiating table. It's a simple strategy. Measures designed to hurt Russia's finances that have been in place for years will effectively be expanded to include those who line the Kremlin's pockets. India and China have already been singled out for what's known as secondary sanctions. Combined with new tariffs, like those announced on Wednesday, the US could end up being the one that pays the price. Russia has already been subjected to a multitude of penalties imposed by Western governments, including Australia, and their allies, before and after its full-scale invasion of Ukraine. Moscow's banks are blocked from accessing global financial markets. Oligarchs' assets abroad are frozen. Many countries have shunned trade. All this was designed to stop Putin's ability to fund his military. And yet, more than three years later, it continues to fight. It's become clear that ending the war will take something more. That's where the US president's new plan comes in. India's external affairs ministry released a statement on Wednesday calling the extra tariffs "extremely unfortunate" and warning the country would "take all actions necessary to protect its national interests". Michael O'Kane is a senior partner at London's Peters&Peters law firm and the co-founder of the Global Sanctions website, which tracks the latest developments in this space. He's sceptical about the effectiveness of secondary sanctions, because the West "continually underestimates Russia's ability to pivot and evade any new measures that are being put in place". "And I don't see any reason why that isn't going to continue." One of the main ways the Kremlin does this is by exporting its oil via a so-called "shadow fleet" of ships. It's estimated this force comprises around 1,400 aging tankers that supply a black market of exports and evade the West's naval net with flags of convenience and convoluted ownership structures. "We now have an under-the-radar network of vessels, agents and brokers who are engaged in this activity," O'Kane says. "The two main buyers are India and China, and they are hugely complex, enormous economies where there's a great deal of difficulty in putting some kind of stranglehold on them." Trump's sanctions/tariffs combination will have different repercussions for China, India and Russia, but experts say the US will be affected too. India's new 25 per cent levies are set to begin in 21 days, while previously announced 25 per cent tariffs will come into effect on Thursday. It means by the end of the month, New Delhi will face some of the highest levies on exports of all the US's trading partners. "With such obnoxious tariff rates, trade between the two nations would be practically dead," Madhavi Arora, an economist at Emkay Global, told the Reuters news agency. While that will hurt India more than the US, slapping new taxes on an important strategic partner could cause significant geopolitical consequences for Washington. "The United States security competition with China in the South China Sea and down into the Indian Ocean is a matter of significant concern to the White House," O'Kane says. "They need to have formidable allies. That's why we've seen this AUKUS arrangement being set up, it's all with the view of being able to contain China from a security perspective. "India plays an important role too, and it would seem to me as though taking action against India at this stage could undermine this effort." While India has begun to learn its fate, new US tariffs and secondary sanctions on China — a superpower with which it is currently locked in trade negotiations — haven't yet been revealed Beijing also welcomes Russia's oil, and immunity from Trump's wrath appears unlikely. Dr Patricia M Kim is a fellow at the Brookings Institution's Centre for Asia Policy Studies and John L Thornton China Centre. "It's hard to imagine Beijing would publicly side with Washington against Moscow or appear to bow to American pressure by cutting purchases of Russian oil," she says, adding any new tariffs announced by the White House would have consequences for Beijing and "deal a blow to Chian's export-driven sectors, especially those heavily reliant on the US market". "But it would hurt the US as well." Unlike its trade relationship with India, the US imports masses of cheap electronics and consumer goods from China's manufacturing hubs — all of which could become a lot more expensive for Americans already complaining about the cost of living. It also relies on rare earths from China, which accounts for almost 70 per cent of global production, to build things like planes, missiles and cars. Earlier this year, the US got a taste of how Beijing reacts to being targeted, when a suite of new tariffs were met with swift reciprocal measures. The world's two largest economies got into the ring, and while they've temporarily stopped throwing punches, the White House has hinted this week it may start again. Trump's new plan to try and put pressure on Russia may seem straightforward, but it could pave the way for a new reality after the guns fall silent in Ukraine, and some will find it frightening. Russia exploiting its new, lucrative black market. India cosying up to the Kremlin. And a disrespected China searching for new ways to punish a country that can't do without its wares.
Perth Now
30 minutes ago
- Perth Now
Nationalist Nawrocki sworn in as Polish president
Karol Nawrocki, a conservative historian and supporter of Donald Trump's MAGA movement, has been sworn in as Poland's president, setting the stage for conflict with the centrist government and potentially cooler relations with Ukraine. Nawrocki took the presidential oath in a ceremony in the Polish parliament on Wednesday. The election victory of Nawrocki, who was backed by the nationalist opposition party Law and Justice (PiS), dealt a blow to Prime Minister Donald Tusk's hopes of cementing the pro-European Union course he has set for the bloc's largest eastern member and left his government floundering in the polls. Poland is now bracing for a continuation of the deadlock seen under nationalist outgoing President Andrzej Duda, with Nawrocki able to use his veto powers to stymie a government agenda that includes rolling back judicial reforms implemented by PiS, which critics said undermined the independence of the courts. Nawrocki also looks set to pose a headache for the government by proposing measures such as tax cuts that are likely to be popular with many voters but hard to implement for an administration with a stretched budget. "As prime minister, I have so far worked with three presidents," Tusk, who was also prime minister from 2007 to 2014, wrote in a post on X. "What will it be like with the fourth? We'll manage." The incoming president has said he does not currently see a place for Ukraine in NATO or the EU, a marked shift in tone compared to Duda. As president, Nawrocki would be required to sign off on Poland's ratification of a new member joining NATO. While Tusk has said that the European Union should play a bigger role in defence matters alongside NATO, PiS and Nawrocki have argued this would undermine Poland's alliance with the United States. "The United States is undoubtedly our priority partner," said Nawrocki's spokesman Rafal Leskiewicz. However, the fact he is a political newcomer who was little known to the public before PiS threw its weight behind him means there is much uncertainty about how his presidency will pan out, political observers say. "I don't know if he will, in short, fully implement the policies of Law and Justice ... or if he will try to come up with his own initiatives," said Andrzej Rychard, a sociologist from the Polish Academy of Science. Nawrocki emerged victorious from a tumultuous campaign in which allegations regarding his past, including that he acquired a second property from an elderly man in return for a promise of care that he did not provide, frequently dominated the headlines. Nawrocki denied accusations of wrongdoing, although he admitted to taking part in an organised fight between football hooligans, adding to the tough-guy image the amateur boxer had already sought to cultivate. After the election, supporters of defeated liberal candidate Rafal Trzaskowski filed thousands of protests to the Supreme Court over irregularities at some polling stations. However, the irregularities were not enough to materially alter the result.
