Trump Slaps Tariffs on Japan, South Korea, and Others
New levies set to take effect August 1 amid global trade tensions.
Former US President Donald Trump has announced a 25% tariff on goods imported from Japan and South Korea, alongside new levies for roughly a dozen other nations, scheduled to commence on August 1, escalating global trade anxieties.
Tariff Details and Warnings
In letters posted on Truth Social and addressed to various world leaders, Trump warned against retaliatory tariff increases, threatening further escalation by stating, “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% that we charge.”
The new tariffs also target Myanmar and Laos at 40%, Cambodia and Thailand at 36%, Serbia and Bangladesh at 35%, Indonesia at 32%, South Africa and Bosnia and Herzegovina at 30%, plus Kazakhstan, Malaysia and Tunisia at 25%.
Reactions and Concerns
Wendy Cutler, vice president of the Asia Society Policy Institute, described the tariff hikes on Japan and South Korea as “unfortunate,”
emphasizing their vital economic security partnerships with the United States.
The office of South African President Cyril Ramaphosa released a statement acknowledging the tariffs and expressing a commitment to pursue “a more balanced and mutually beneficial trade relationship with the United States.”
Economic Impact and Legal Challenges
The S&P 500 stock index experienced a 0.8% decline in Monday trading, while the interest on 10-year US Treasury notes increased to nearly 4.39% amid rising concerns about the tariffs’ potential economic repercussions.
A legal challenge contests Trump’s authority to impose tariffs via an economic emergency declaration; a May ruling by the US Court of International Trade stated that he exceeded his authority.
Trump’s Trade Strategy
According to White House press secretary Karoline Leavitt, Trump aims to create “tailor-made trade plans for each and every country on this planet.”
While he threatened higher tariffs on countries aligned with BRICS policy goals, he also signed trade frameworks with Vietnam and the United Kingdom, though he has had difficulties reaching deals elsewhere.
Looking Ahead
These actions occur as experts are predicting further instability due to recent geopolitical tensions; as evidenced by the Kiel Institute’s Trade Indicator, which fell 2.4 points in May 2024, signalling a decline in global trade [Kiel Institute].
With the new tariffs set to take effect soon, and a brief window for further talks, the global trade landscape remains fraught with uncertainty as the international community braces for potential economic shifts.
