Donald Trump has revived his threat to hit major trading partners with steep “reciprocal” tariffs even when he granted a three -week return to countries to negotiate trade deals with the United States.
The president sent letters to Japan and South Korea on Monday, and among the largest US counterparts, saying the country will impose 25 % taxes starting August 1, South Africa will be hit by 30 % tariffsTrump said, at the same time announcing large taxes in 11 other countries.
The tariffs were approximately the same level with those Trump Discovered during his release “Liberation Day” on April 2, it sparked serious ruges in global financial markets.
The reciprocal taxes, which have affected dozens of countries, were partially paused until July 9, stable markets. But since then, the White House has hit only three trading pills – with UK, China And Vietnam.
Trump left the door open on Monday for further deals, saying the letters are “more or less final offers (a)”.
“I would say finally. But if (countries) come with another offer, and if I like it, we’ll do it. I would say a company … but not 100 percent firm. If they call and they say (they) would like to do something different, we will be open to it.”
US is close to agree a Trading Agreement with Indiaadded the president.
The White House announced on Monday an executive order saying reciprocal taxes will now take effect immediately after midnight on August 1. The president made a decision “based on additional information and recommendations from various senior officials, including information on the status of discussions with trading partners,” the order said.
Trump’s volume of tariff threats pressured markets on Monday despite delaying their implementation. The S&P 500 ended on Monday by 0.8 %. Asian markets were subdued in early trading. The victory strengthened 0.4 % to 1,370 per dollar, and the yen was flat at £ 146.
JPMorgan noted that the announcement is “a reminder that the risks are reduced to higher rates of tariffs than lower”.
“The reason for the initial delay-out from the significant market sale-it was to allow time to generate a series of one-sided trading deals,” the Wall Street Bank said. “Not surprisingly, several realistic deals have been concluded and the Trump administration has returned where it all started.”
In almost identical letters posted on his truth social platform, Trump said US trade deficits with goods with countries targeted on Monday, which included Indonesia, Malaysia and Thailand, were “a major threat to our economy and really our national security”.
In the letters, referred to Shigeru Ibiba, the Prime Minister of Japan and Lee AEA-Ming, president of South Korea, Trump added that if each country increased its tariffs in retaliation “then, regardless of the number you choose to pick up, they will be added to 25 % we charge”.
But in indication that the proposed tariffs can be negotiated, he said that if countries open their markets “we may, we may consider adjusting … These tariffs can be changed, up or down, depending on our relations with your country.”
Officials in Tokyo said Ishiba would call an emergency meeting of his government’s trading working group on Tuesday. Ishiba said in television comments that the tariffs were threatened in the letter were “really sad”.
The United States already has a series of sector tariffs for imports from all countries, including a 25 % tariff for automatic parts and parts for Auto and a 50 percent tariff for all imports of steel and aluminum.
A US official has confirmed that the goods that have already been the subject of sector tariffs, such as automatic and metals, will not be affected by the new rates listed by Trump, in addition.
Washington also has national security probes that can lead to tariffs for a range of other products and industries, including air space, pharmaceuticals, lumber, copper, chips and consumer electronics.
There is Trump has escalated his rhetoric against Tokyo In the last few weeks, he standing out the key trading partner and attacking him as “spoiled” to refuse to buy more American rice.
Weeks of negotiations between trade negotiators in the United States and Japanese traders have made a number of proposals aimed at violating trade deadlock, including Japan to buy more US energy and agricultural products. But Tokyo also demanded a complete release from Trump’s 25 percent automatic tariffs.
Meanwhile, US trade talks with South Korea have been postponed to political turmoil in Seoul After the impeachment to former Korean President Yun Suk Jool.
The South Korean Ministry of Industry said on Tuesday that changing the government in Seoul means “there is an insufficient time to reach an agreement (with the United States) on all issues”, adding that “we will continue forward with negotiations to produce mutually useful outcomes in the remaining time”.
Separately, the EU was expected to sign a temporary trade agreement with the United States this week to retain 10 percent tariffs, while talks continued, Trade Commissioner Maros Jefcovic told member states on Monday.
The two sides worked on plans to reduce the 25 % car tariff, but there was no guarantee of steel to reduce their level by 50 %, he added, according to three people informed about discussions.
Additional notice from Andy Borders in Brussels And Kate Duguid in the Newujork
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