Trump hits Asian nations with tariffs, including allies Japan, South Korea

United States President Donald Trump is set to enforce 25 percent tariffs connected 2 cardinal US allies, Japan and South Korea, opening connected August 1 arsenic the administration’s self-imposed deadline for commercialized agreements of July 9 nears without a woody successful place.

On Monday, the Trump medication said this successful the archetypal of 12 letters to cardinal US commercialized partners regarding the caller levies they face.

In near-identically worded letters to the Japanese and South Korean leaders, the US president said the commercialized narration was “unfortunately, acold from Reciprocal”.

Japan’s Prime Minister Shigeru Ishiba has said that helium “won’t easy compromise” successful commercialized talks with the Trump administration.

The US imports astir doubly arsenic overmuch from Japan arsenic it exports to the country, according to US Census Bureau data.

Currently, some Japan and South Korea person a 10 percent levy successful place, the aforesaid arsenic astir each US trading partners. But Trump said helium was acceptable to little the caller levels if the 2 countries changed their commercialized policies.

“We will, perhaps, see an accommodation to this letter,” helium said successful letters to the 2 Asian countries’ leaders that helium posted connected his Truth Social platform. “If for immoderate crushed you determine to rise your Tariffs, then, immoderate the fig you take to rise them by, volition beryllium added onto the 25% that we charge.”

Trump besides announced the US volition enforce 25 percent tariffs each connected Malaysia and Kazakhstan, 30 percent connected South Africa and 40 percent each connected Laos and Myanmar.

US Treasury Secretary Scott Bessent said earlier connected Monday that helium expected respective commercialized announcements to beryllium made successful the adjacent 48 hours, adding that his inbox was afloat of last-ditch offers from countries to clinch a tariff woody by the deadline. Bessent did not accidental which countries could get deals and what they mightiness contain.

In April, the White House said it would person 90 commercialized and tariff deals established wrong 90 days. That did not happen, and since that time, the medication has solidified 2 agreements — 1 with Vietnam, and the different with the United Kingdom.

“There volition beryllium further letters successful the coming days,” White House Press Secretary Karoline Leavitt said, adding that “we are close” connected immoderate deals. She said Trump would motion an enforcement bid connected Monday formally delaying the July 9 deadline to August 1.

BRICS tensions 

Trump besides enactment members of the processing nations’ BRICS radical successful his sights arsenic its leaders met successful Brazil, threatening an further 10 percent tariff connected immoderate BRICS countries aligning themselves with “anti-American” policies.

The caller 10 percent tariff volition beryllium imposed connected idiosyncratic countries if they instrumentality anti-American argumentation actions, a root acquainted with the substance told Reuters quality agency.

The BRICS radical comprises Brazil, Russia, India and China and South Africa on with caller joiners Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates. Trump’s comments deed the South African rand, affecting its worth successful Monday trading.

Russia said BRICS was “a radical of countries that stock communal approaches and a communal satellite presumption connected however to cooperate, based connected their ain interests”.

“And this practice wrong BRICS has ne'er been and volition ne'er beryllium directed against immoderate 3rd countries,” said Kremlin spokesperson Dmitry Peskov.

European Union astatine the table

The European Union volition not beryllium receiving a missive mounting retired higher tariffs, EU sources acquainted with the substance told Reuters connected Monday.

The EU inactive aims to scope a commercialized woody by July 9 aft European Commission President Ursula von der Leyen and Trump had a “good exchange”, a committee spokesperson said.

It was not clear, however, whether determination had been a meaningful breakthrough successful talks to stave disconnected tariff hikes connected the largest trading spouse of the US.

Adding to the pressure, Trump threatened to enforce a 17 percent tariff connected EU nutrient and agriculture exports, it emerged past week.

The EU has been torn implicit whether to propulsion for a speedy and airy commercialized woody oregon backmost its ain economical clout successful trying to negociate a amended outcome. It had already dropped hopes for a broad commercialized statement earlier the July deadline.

“We privation to scope a woody with the US. We privation to debar tariffs,” the spokesperson said astatine a regular briefing.

Without a preliminary agreement, wide US tariffs connected astir imports would emergence from their existent 10 percent to the rates acceptable retired by Trump connected April 2. In the EU’s case, that would beryllium 20 percent.

Von der Leyen besides held talks with the leaders of Germany, France and Italy astatine the weekend, Germany said. German Chancellor Friedrich Merz has repeatedly stressed the request for a speedy woody to support industries susceptible to tariffs ranging from cars to pharmaceuticals.

Germany said the parties should let themselves “another 24 oregon 48 hours to travel to a decision”. And the country’s car institution Mercedes-Benz said connected Monday its second-quarter portion income of cars and vans had fallen 9 percent, blaming tariffs.

Markets respond

US markets person tumbled connected Trump’s tariff announcements.

As of 3:30pm successful New York (19:30 GMT), the S&P 500 fell by 1 percent, marking the biggest driblet successful 3 weeks. The tech-heavy Nasdaq Composite Index was down by a small much than 1 percent, portion the Dow Jones Industrial Average besides fell by much than a afloat percent point.

US-listed shares of Japanese automotive companies fell, with Toyota Motor Corp down 4.1 percent successful mid-afternoon trading and Honda Motor disconnected by 3.8 percent. Meanwhile, the US dollar surged against some the Japanese yen and the South Korean won.