Trump declares 25 per cent tariffs on Japan and South Korea in first wave of letters
The European Union has been spared for now, but faces the threat of 17 per cent tariffs on food and agriculture exports.
Only Britain and Vietnam have reached trade deals ahead of the 9 July deadline. United States President Donald Trump has announced tariffs of 25 per cent on Japan and South Korea, stepping up pressure on the two key US allies and a dozen other economies to reach trade deals with Washington. Trump issued similar letters to South Africa, Malaysia, Myanmar, Laos and Kazakhstan, saying he would slap duties on their products ranging from 25 per cent to 40 per cent. The president had said on the weekend that he would send a first batch of letters to countries informing them that he would reimpose harsh levies postponed earlier in April. In near-identically worded letters to Japanese and South Korean leaders, Trump said the tariff hikes came as their trading relationships with Washington were "unfortunately, far from reciprocal".
The tariffs set out in Trump's latest letters are due to take effect at the start of August. He warned of further escalation if the countries involved retaliated against the duties.
Currently, the affected countries have been hit with a 10 per cent levy that Trump imposed on almost all trading partners. But Trump said he was ready to lower the new levels if countries changed their trade policies: "We will, perhaps, consider an adjustment to this letter." Japan's Prime Minister Shigeru Ishiba had earlier said that he "won't easily compromise" in trade talks with Washington.
White House press secretary Karoline Leavitt told reporters on Monday that Trump would sign an order later in the day to delay his original 9 July deadline for steeper tariffs to take effect — postponing their imposition to 1 August.
White House press secretary Karoline Leavitt said that besides Japan and South Korea, tehre would be approximately 12 other trading partners receiving letters from Trump soon. Source: Getty / Andrew Harnik She added that besides Japan and South Korea, there would be approximately 12 other partners receiving letters from Trump soon. With the deadline extension, Leavitt noted that Trump would set out the "reciprocal tariff rate" for partners in the coming month as negotiations continue. Amid market turmoil, he then suspended the initial tariffs for 90 days, a deadline that would have expired Wednesday without the latest extension. While the Trump administration had signalled hopes of striking dozens of deals by July — at one point boasting of "90 deals in 90 days" — there have been limited results so far. Washington has unveiled pacts with only Britain and Vietnam, while the United States and China agreed to temporarily lower tariff levels on each other's products that had earlier reached three digits .
Asked why Trump opted to start with South Korea, Leavitt said: "It's the President's prerogative, and those are the countries he chose." US treasury secretary Scott Bessent said on Monday that there would be a number of deals coming up: "We are going to have several announcements in the next 48 hours." "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 told CNBC.
He added that he would meet with his Chinese counterpart in the coming weeks.
The two sides have so far held high-level talks in Geneva and London. But Washington and Beijing's pause on tit-for-tat tariffs is due to expire in mid-August. On whether he was disappointed in the number of trade deals achieved so far, Trump's trade adviser Peter Navarro maintained that he is "happy with the progress we've had." Trump has also threatened another 10 per cent tariff on countries aligning themselves with the emerging BRICS nations, accusing them of "Anti-American policies" after they slammed his duties at a summit. For now, partners are still rushing to avert Trump's tariffs altogether. The European Commission said that EU chief Ursula von der Leyen had a "good exchange" with Trump on trade when the pair spoke Sunday. The EU will not be receiving a letter setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Advertiser
2 hours ago
- The Advertiser
Australia pays US second $800m for AUKUS amid review
Australia has paid the United States $A800 million in the second instalment under the AUKUS nuclear submarine deal, despite an ongoing formal review of the agreement by US President Donald Trump's administration. Prime Minister Anthony Albanese confirmed the latest instalment on Wednesday, following an initial $A500 million paid in February. In 2023, the United States, Australia and Britain unveiled details of a plan to provide Australia with nuclear-powered attack submarines from the early 2030s to counter China's ambitions in the Indo-Pacific. Australia committed to spend $A368 billion over three decades in its biggest-ever defence deal. Canberra is due to pay the US $A3 billion by the end of the year to support the expansion of American submarine shipyards, Reuters reported in April. "There's a schedule of payments to be made. We have an agreement with the United States as well as with the United Kingdom, it is about increasing their capacity, their industrial capacity," Albanese told national broadcaster ABC. "As part of that as well, we have Australians on the ground, learning those skills." Trump launched a formal review of AUKUS in June to examine whether the pact met his "American First" criteria. It will be led by Elbridge Colby, who in the past has expressed scepticism about AUKUS. Australia, which sees the submarines as critical to its own defence as tensions grow over China's military build-up, has maintained it is confident the pact will proceed. "We support AUKUS," Albanese said. "We have an agreement to a treaty level, with our partners, signed, of course in San Diego with the United States and United Kingdom." Washington will sell several Virginia-class nuclear-powered submarines to Australia, while Britain and Australia will later build a new AUKUS-class submarine. Australia has paid the United States $A800 million in the second instalment under the AUKUS nuclear submarine deal, despite an ongoing formal review of the agreement by US President Donald Trump's administration. Prime Minister Anthony Albanese confirmed the latest instalment on Wednesday, following an initial $A500 million paid in February. In 2023, the United States, Australia and Britain unveiled details of a plan to provide Australia with nuclear-powered attack submarines from the early 2030s to counter China's ambitions in the Indo-Pacific. Australia committed to spend $A368 billion over three decades in its biggest-ever defence deal. Canberra is due to pay the US $A3 billion by the end of the year to support the expansion of American submarine shipyards, Reuters reported in April. "There's a schedule of payments to be made. We have an agreement with the United States as well as with the United Kingdom, it is about increasing their capacity, their industrial capacity," Albanese told national broadcaster ABC. "As part of that as well, we have Australians on the ground, learning those skills." Trump launched a formal review of AUKUS in June to examine whether the pact met his "American First" criteria. It will be led by Elbridge Colby, who in the past has expressed scepticism about AUKUS. Australia, which sees the submarines as critical to its own defence as tensions grow over China's military build-up, has maintained it is confident the pact will proceed. "We support AUKUS," Albanese said. "We have an agreement to a treaty level, with our partners, signed, of course in San Diego with the United States and United Kingdom." Washington will sell several Virginia-class nuclear-powered submarines to Australia, while Britain and Australia will later build a new AUKUS-class submarine. Australia has paid the United States $A800 million in the second instalment under the AUKUS nuclear submarine deal, despite an ongoing formal review of the agreement by US President Donald Trump's administration. Prime Minister Anthony Albanese confirmed the latest instalment on Wednesday, following an initial $A500 million paid in February. In 2023, the United States, Australia and Britain unveiled details of a plan to provide Australia with nuclear-powered attack submarines from the early 2030s to counter China's ambitions in the Indo-Pacific. Australia committed to spend $A368 billion over three decades in its biggest-ever defence deal. Canberra is due to pay the US $A3 billion by the end of the year to support the expansion of American submarine shipyards, Reuters reported in April. "There's a schedule of payments to be made. We have an agreement with the United States as well as with the United Kingdom, it is about increasing their capacity, their industrial capacity," Albanese told national broadcaster ABC. "As part of that as well, we have Australians on the ground, learning those skills." Trump launched a formal review of AUKUS in June to examine whether the pact met his "American First" criteria. It will be led by Elbridge Colby, who in the past has expressed scepticism about AUKUS. Australia, which sees the submarines as critical to its own defence as tensions grow over China's military build-up, has maintained it is confident the pact will proceed. "We support AUKUS," Albanese said. "We have an agreement to a treaty level, with our partners, signed, of course in San Diego with the United States and United Kingdom." Washington will sell several Virginia-class nuclear-powered submarines to Australia, while Britain and Australia will later build a new AUKUS-class submarine. Australia has paid the United States $A800 million in the second instalment under the AUKUS nuclear submarine deal, despite an ongoing formal review of the agreement by US President Donald Trump's administration. Prime Minister Anthony Albanese confirmed the latest instalment on Wednesday, following an initial $A500 million paid in February. In 2023, the United States, Australia and Britain unveiled details of a plan to provide Australia with nuclear-powered attack submarines from the early 2030s to counter China's ambitions in the Indo-Pacific. Australia committed to spend $A368 billion over three decades in its biggest-ever defence deal. Canberra is due to pay the US $A3 billion by the end of the year to support the expansion of American submarine shipyards, Reuters reported in April. "There's a schedule of payments to be made. We have an agreement with the United States as well as with the United Kingdom, it is about increasing their capacity, their industrial capacity," Albanese told national broadcaster ABC. "As part of that as well, we have Australians on the ground, learning those skills." Trump launched a formal review of AUKUS in June to examine whether the pact met his "American First" criteria. It will be led by Elbridge Colby, who in the past has expressed scepticism about AUKUS. Australia, which sees the submarines as critical to its own defence as tensions grow over China's military build-up, has maintained it is confident the pact will proceed. "We support AUKUS," Albanese said. "We have an agreement to a treaty level, with our partners, signed, of course in San Diego with the United States and United Kingdom." Washington will sell several Virginia-class nuclear-powered submarines to Australia, while Britain and Australia will later build a new AUKUS-class submarine.
Perth Now
3 hours ago
- Perth Now
Australia pays US second $800m for AUKUS amid review
Australia has paid the United States $A800 million in the second instalment under the AUKUS nuclear submarine deal, despite an ongoing formal review of the agreement by US President Donald Trump's administration. Prime Minister Anthony Albanese confirmed the latest instalment on Wednesday, following an initial $A500 million paid in February. In 2023, the United States, Australia and Britain unveiled details of a plan to provide Australia with nuclear-powered attack submarines from the early 2030s to counter China's ambitions in the Indo-Pacific. Australia committed to spend $A368 billion over three decades in its biggest-ever defence deal. Canberra is due to pay the US $A3 billion by the end of the year to support the expansion of American submarine shipyards, Reuters reported in April. "There's a schedule of payments to be made. We have an agreement with the United States as well as with the United Kingdom, it is about increasing their capacity, their industrial capacity," Albanese told national broadcaster ABC. "As part of that as well, we have Australians on the ground, learning those skills." Trump launched a formal review of AUKUS in June to examine whether the pact met his "American First" criteria. It will be led by Elbridge Colby, who in the past has expressed scepticism about AUKUS. Australia, which sees the submarines as critical to its own defence as tensions grow over China's military build-up, has maintained it is confident the pact will proceed. "We support AUKUS," Albanese said. "We have an agreement to a treaty level, with our partners, signed, of course in San Diego with the United States and United Kingdom." Washington will sell several Virginia-class nuclear-powered submarines to Australia, while Britain and Australia will later build a new AUKUS-class submarine.
Herald Sun
4 hours ago
- Herald Sun
Japan PM plans to resign after election debacle: local media
Don't miss out on the headlines from Breaking News. Followed categories will be added to My News. Having done a trade deal with US President Donald Trump, Japan's prime minister will soon announce his resignation, reports said Wednesday, after his latest election debacle left his coalition without a majority now in both houses of parliament. The reports said Shigeru Ishiba had conveyed his intention to step down to those close to him, following the announcement Wednesday of a US-Japan trade deal. Sunday's upper house election was calamitous for Ishiba's centre-right Liberal Democratic Party (LDP), which has governed almost continuously since 1955. Voters angry at inflation turned to other parties, notably the "Japanese first" Sanseito, whose "anti-globalist" drive echoes the agenda of populist movements elsewhere. Ishiba plans to vacate the top job by the end of August, the Mainichi daily reported. The Yomiuri newspaper said he would announce his resignation in July but did not give details of when he would leave office. These and other reports said calls for the 68-year-old to depart had grown louder within the LDP since the results of the upper house election. But he communicated his decision after striking a trade deal with Washington that cut a threatened 25-percent tariff to 15 percent ahead of an August 1 deadline. In the election on Sunday, the LDP and its junior partner Komeito fell three seats short of retaining a majority. It came only months after Ishiba's coalition was forced into a minority government in the more powerful lower house, in the LDP's worst result in 15 years. Ishiba won the party leadership in September, on his fifth try, to become the 10th LDP prime minister since 2000 -- all of them men. Since the October snap lower house election, the ruling coalition has been forced to bargain with opposition parties to pass legislation. After years of stagnant or falling prices, consumers in the world's fourth-largest economy have been squeezed by inflation since Russia's 2022 invasion of Ukraine. In particular, the price of rice has doubled, while resentment has also lingered over an LDP funding scandal. "I really hope things will get better in Japan, but the population is declining, and I think living in Japan will get tougher and tougher," Naomi Omura, an 80-year-old from Hiroshima, told AFP in Tokyo on Wednesday. "It is disappointing that Japan cannot act more strongly" towards the United States" but "I think it was good that they agreed on a lower tariff", she said. Tetsuo Momiyama, an 81-year-old Tokyo resident, said Ishiba "is finished already". "It's a good timing for him to go," Momiyama said. hih-oh-kaf/mtp Originally published as Japan PM plans to resign after election debacle: local media
