Japan, South Korea face 25% tariffs as Trump ramps up trade war in letters to leaders
The imposition of a levy of 25% on US importers of all goods from key allies Japan and South Korea rattled Wall Street, with the S&P 500 Index knocked back sharply, though markets in Asia were taking the news in stride.
In letters to 14 countries, Trump hinted at opportunities for additional negotiations while warning reprisals would draw a like-for-like response.
"If, for any reason, you decide to raise your tariffs, whatever the number you choose to raise them by will be added on to the 25% we charge," Trump told Japan and South Korea in letters released on his Truth Social platform.
The higher tariffs take effect from August 1, and notably will not combine with previously announced sectoral tariffs, such as those on automobiles and steel and aluminium.
Countries have been under pressure to conclude deals with the US after Trump unleashed a global trade war in April that roiled financial markets and sent policymakers scrambling to protect their economies.
Trading partners received another reprieve as Trump signed an executive order on Monday extending to August 1 the Wednesday deadline for negotiations.
Asked if the deadline was firm, Trump replied: "I would say firm, but not 100% firm. If they call and they say we'd like to do something in a different way, we're going to be open to that."
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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ramaphosa emphasised that the BRICS bloc's goal is to promote cooperation and advance humanity's interests, not to compete with any particular country. "There should never be vengeance. There should never be retribution against countries that are seeking to cooperate and to advance the interests of humanity," he said. 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