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1News
2 hours ago
- 1News
Trump to put 25% tariffs on Japan, South Korea
US President Donald Trump set a 25% tax on goods imported from Japan and South Korea, as well as new tariff rates on a dozen other nations that would go into effect on August 1. Trump provided notice by posting letters on Truth Social that were addressed to the leaders of the various countries. The letters warned them to not retaliate by increasing their own import taxes, or else the Trump administration would further increase tariffs. "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," Trump wrote in the letters to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung. The letters were not the final word from Trump on tariffs, so much as another episode in a global economic drama in which he has placed himself at the centre. His moves have raised fears that economic growth would slow to a trickle, if not make the US and other nations more vulnerable to a recession. But Trump is confident that tariffs are necessary to bring back domestic manufacturing and fund the tax cuts he signed into law last Friday. He mixed his sense of aggression with a willingness to still negotiate, signalling the likelihood that the drama and uncertainty would continue and that few things are ever final with Trump. ADVERTISEMENT Imports from Myanmar and Laos would be taxed at 40%, Cambodia and Thailand at 36%, Serbia and Bangladesh at 35%, Indonesia at 32%, South Africa and Bosnia and Herzegovina at 30% and Kazakhstan, Malaysia and Tunisia at 25%. Trump placed the word "only" before revealing the rate in his letters to the foreign leaders, implying that he was being generous with his tariffs. But the letters generally followed a standard format, so much so that the one to Bosnia and Herzegovina accidentally addressed its woman leader, Željka Cvijanović, as "Mr. President". The morning's headlines in 90 seconds, including what the jury saw at the mushroom murder trial, where house prices are climbing, and why YouTube's biggest star has business plans in NZ. (Source: 1News) Trade talks have yet to deliver several deals White House press secretary Karoline Leavitt said that Trump was by setting the rates himself creating "tailor-made trade plans for each and every country on this planet and that's what this administration continues to be focused on". Following a now well-worn pattern, Trump plans to continue sharing the letters sent to his counterparts on social media and then mail them the documents, a stark departure from the more formal practices of all his predecessors when negotiating trade agreements. The letters are not agreed-to settlements but Trump's own choice on rates, a sign that the closed-door talks with foreign delegations failed to produce satisfactory results for either side. ADVERTISEMENT Wendy Cutler, vice president of the Asia Society Policy Institute who formerly worked in the office of the US Trade Representative, said the tariff hikes on Japan and South Korea were "unfortunate". "Both have been close partners on economic security matters and have a lot to offer the United States on priority matters like shipbuilding, semiconductors, critical minerals and energy cooperation," Cutler said. Trump still has outstanding differences on trade with the European Union and India, among other trading partners. Tougher talks with China are on a longer time horizon in which imports from that nation are being taxed at 55%. The office of South African President Cyril Ramaphosa said in a statement that the tariff rates announced by Trump characterised the trade relationship with the US, but it would "continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the United States" after having proposed a trade framework on May 20. White House press secretary Karoline Leavitt speaks with reporters in the James Brady Press Briefing Room at the White House. (Source: Associated Press) Higher tariffs prompt market worries, more uncertainty ahead The S&P 500 stock index was down 0.8% in Monday trading, while the interest charged on 10-year US Treasury notes had increased to nearly 4.39%, a figure that could translate into elevated rates for mortgages and auto loans. ADVERTISEMENT Trump has declared an economic emergency to unilaterally impose the taxes, suggesting they are remedies for past trade deficits even though many US consumers have come to value autos, electronics and other goods from Japan and South Korea. The constitution grants Congress the power to levy tariffs under normal circumstances, though tariffs can also result from executive branch investigations regarding national security risks. Trump's ability to impose tariffs through an economic emergency is under legal challenge, with the administration appealing a May ruling by the US Court of International Trade that said the president exceeded his authority. It's unclear what he gains strategically against China — another stated reason for the tariffs — by challenging two crucial partners in Asia, Japan and South Korea, that could counter China's economic heft. "These tariffs may be modified, upward or downward, depending on our relationship with your Country," Trump wrote in both letters. Because the new tariff rates go into effect in roughly three weeks, Trump is setting up a period of possibly tempestuous talks among the US and its trade partners to reach new frameworks. "I don't see a huge escalation or a walk back — it's just more of the same," said Scott Lincicome, a vice president at the Cato Institute, a libertarian think tank. Trump initially roiled the financial markets by announcing tariff rates on dozens of countries, including 24% on Japan and 25% on South Korea. In order to calm the markets, Trump unveiled a 90-day negotiating period during which goods from most countries were taxed at a baseline 10%. So far, the rates in the letters sent by Trump either match his April 2 tariffs or are generally close to them. ADVERTISEMENT The 90-day negotiating period technically ends on Wednesday, even as multiple administration officials suggested the three-week period before implementation is akin to overtime for additional talks that could change the rates. Trump plans to sign an executive order on Monday to delay the official tariff increases until Aug. 1, Leavitt said. Congressionally approved Trade agreements historically have sometimes taken years to negotiate because of the complexity. Administration officials have said Trump is relying on tariff revenues to help offset the tax cuts he signed into law on July 4, a move that could shift a greater share of the federal tax burden onto the middle class and poor as importers would likely pass along much of the cost of the tariffs. Trump has warned major retailers such as Walmart to simply "eat" the higher costs, instead of increasing prices in ways that could intensify inflation. Josh Lipsky, chair of international economics at The Atlantic Council, said that a three-week delay in imposing the tariffs was unlikely sufficient for meaningful talks to take place. "I take it as a signal that he is serious about most of these tariffs and it's not all a negotiating posture," Lipsky said. Tugboats assist a container ship as it prepares to dock at the Manila International Container Terminal at the Philippine capital. (Source: Associated Press) Trade gaps persist, more tariff hikes are possible ADVERTISEMENT Trump's team promised 90 deals in 90 days, but his negotiations so far have produced only two trade frameworks. His outline of a deal with Vietnam was clearly designed to box out China from routing its America-bound goods through that country, by doubling the 20% tariff charged on Vietnamese imports on anything traded transnationally. The quotas in the signed United Kingdom framework would spare that nation from the higher tariff rates being charged on steel, aluminium and autos, though British goods would generally face a 10% tariff. The United States ran a US$69.4 billion trade imbalance in goods with Japan in 2024 and a US$66 billion imbalance with South Korea, according to the Census Bureau. The trade deficits are the differences between what the US exports to a country relative to what it imports. According to Trump's letters, autos would be tariffed separately at the standard 25% worldwide, while steel and aluminium imports would be taxed on 50%. This is not the first time that Trump has tangled with Japan and South Korea on trade — and the new tariffs suggest his past deals made during his first term failed to deliver on his administration's own hype. In 2018, during Trump's first term, his administration celebrated a revamped trade agreement with South Korea as a major win. And in 2019, Trump signed a limited agreement with Japan on agricultural products and digital trade that at the time he called a "huge victory for America's farmers, ranchers and growers". ADVERTISEMENT Trump has also said on social media that countries aligned with the policy goals of BRICS, an organisation composed of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates, would face additional tariffs of 10%.
Otago Daily Times
3 hours ago
- Otago Daily Times
Trump ramps up trade war with higher tariffs
US President Donald Trump today began telling trade partners – from powerhouse suppliers like Japan and South Korea to minor players – that sharply higher US tariffs will start on August 1, marking a new phase in the trade war he launched earlier this year. The 14 countries sent letters so far, which included smaller US exporters like Serbia, Thailand and Tunisia, hinted at opportunities for additional negotiations while at the same time warning that any reprisal steps would be met with a like-for-like response. "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," Trump said in letters, released on his Truth Social platform, to Japan and South Korea. The higher tariffs, levied on US importers of foreign goods, take effect August 1, and notably will not combine with previously announced sector tariffs such as those on automobiles and steel and aluminum. That means, for instance, that Japanese vehicle tariffs will remain at 25%, rather than the existing 25% auto sector tariff climbing to 50% with the new reciprocal rate as has occurred with some of Trump's tariffs. The clock has been ticking for countries to conclude deals with the US after Trump unleashed a global trade war in April that has roiled financial markets and sent policymakers scrambling to protect their economies. Trading partners got another reprieve as Trump signed an executive order on Monday extending the Wednesday deadline for negotiations to August 1. Trump has kept much of the world guessing on the outcome of months of talks with countries hoping to avoid the hefty tariff hikes he has threatened. The rate for South Korea is the same as Trump initially announced, while the rate for Japan is 1 point higher than the one announced on April 2. A week later, he capped all of the so-called reciprocal tariffs at 10% until Wednesday. Only two agreements have so far been reached, with Britain and Vietnam. Wendy Cutler, vice president of the Asia Society Policy Institute, said it was unfortunate Trump was hiking tariffs on imports from two of the closest US allies, but there was still time for a breakthrough in negotiations. "While the news is disappointing, it does not mean the game is over," Cutler said. Trump said that the United States would impose 25% tariffs on goods from Tunisia, Malaysia and Kazakhstan; 30% on South Africa, Bosnia and Herzegovina; 32% on Indonesia; 35% on Serbia and Bangladesh; 36% on Cambodia and Thailand and 40% on Laos and Myanmar. South Korea said it planned to intensify US trade talks and considers Trump's plan for a 25% tariff from August 1 as effectively extending a grace period on implementing reciprocal tariffs. "We will step up negotiations during the remaining period to reach a mutually beneficial result to quickly resolve the uncertainties from tariffs," the country's Industry Ministry said. South African President Cyril Ramaphosa said the 30% US tariff rate was unjustified given that 77% of US goods enter South Africa with no tariffs. Ramaphosa's spokesperson said his government would continue to engage with the US There was no response from the Japanese embassy in Washington. US stocks fell in response, the latest market turmoil as Trump's trade moves have whipsawed financial markets and sent policymakers scrambling to protect their economies. US stocks were driven to near bear-market territory by his cascade of tariff announcements through the early spring but quickly rebounded to record highs after he put the stiffest levies on hold on April 9. The S&P 500 closed down about 0.8%, its biggest drop in three weeks. US-listed shares of Japanese automotive companies fell, with Toyota Motor closing down 4.0% and Honda Motor off by 3.9%. The dollar surged against both the Japanese yen and the South Korean won. "Tariff talk has sucked the wind out of the sails of the market," said Brian Jacobsen, chief economist at Annex Wealth Management. Most of the announced tariff rates have been rounded down, he added, and the letters come across as "take it or leave it" offers. US Treasury Secretary Scott Bessent said earlier on Monday he expected several trade announcements in the next 48 hours, adding that his inbox was full of countries' last-ditch offers. The European Union will not be receiving a letter setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday. The EU still aims to reach a trade deal by Wednesday after European Commission President Ursula von der Leyen and Trump had a "good exchange," a commission spokesperson said. The EU has been torn over whether to push for a quick and light trade deal or leverage its economic clout to negotiate a better outcome. It had already given up hopes for a comprehensive trade agreement before the July deadline. The president also threatened leaders of developing nations in the BRICS group, who are meeting in Brazil, with an additional 10% tariff if they adopt "anti-American" policies. The group includes Brazil, Russia, India and China among others.
RNZ News
4 hours ago
- RNZ News
How are designated terrorist entities selected in New Zealand? Here's what you need to know
Stewart Rhodes, Enrique Tarrio, Joe Biggs and Zach Rehl, members of the far-right group the Proud Boys, rally outside the US Capitol following a news conference on 21 February 2025 in Washington, DC. The Proud Boys are no longer designated as a terrorist entity in New Zealand after being named such in 2022. Photo: CHIP SOMODEVILLA / AFP Explainer - Who are the terrorist groups listed under New Zealand law, and who decides who names them? With news last week that the American far-right group the Proud Boys had been removed from the terrorist entity list , there are questions about exactly how such a designation works. Here's what you need to know about how terrorist entities are designated in New Zealand. A designated terrorist entity decision is made by the government against groups or individuals known for violent actions. Once an entity is on the list, it greatly restricts their financial activities, participation and efforts to recruit new members. John Battersby is a specialist on terrorism and counter-terrorism and a teaching fellow in the Centre for Defence and Security Studies at Massey University. Entities can end up on the list "broadly speaking, if an individual or group is active in perpetrating terrorist acts, and are internationally recognised as doing so," he said. This includes groups designated by the United Nations, "as well as any which the NZ prime minister (acting on advice) has 'good cause to suspect' have participated in committing a terrorist act". There are basically two kinds of terrorist entities - ones that are listed by the United Nations which New Zealand is obliged to include, and ones that New Zealand has designated on its own. New Zealand has international counterterrorism obligations under a number of United Nations Security Council (UNSC) Resolutions. These came after the Terrorism Suppression Act 2002 was passed, following the September 11, 2001 terrorist attacks in the United States. That act established a legal framework for the suppression of terrorism. Those on the UN list also on New Zealand's list include the Islamic State in Iraq and the Levant (Da'esh), Al-Qaida, the Taliban and associated individuals, groups, undertakings and entities. The second set of entities designated in New Zealand are associated with UN Security Council Resolution 1373 which obliges us to outlaw the financing of, participation in and recruitment to terrorist entities. The UN's resolution leaves it to member states to identify the entities against which they should act. The New Zealand-designated group includes groups such as the Houthis, Hamas, Hezbollah, the Real Irish Republican Army and The Shining Path. The only individual listed is the convicted Christchurch mosque shooter. "Designating the offender is an important demonstration of New Zealand's condemnation of terrorism and violent extremism in all forms," former Prime Minister Jacinda Ardern said in making that call in 2020 . A policeman patrols at Al Noor Mosque in Christchurch on March 23, 2019, eight days after a terrorist attack claimed the lives of 50 people. Photo: AFP Once a group is on the list, it means it freezes their assets in New Zealand and it's illegal to deal with the entity's property or provide such an entity with property, financial or related services. It is also an offence to knowingly recruit for a group on the list, or participate in a group for the purpose of enhancing its ability to carry out a terrorist act, knowing, or being reckless as to whether the group is a designated entity. Action can be taken against designated entities' property, and Customs can seize and detain goods or cash they have "good cause" to suspect are tied to designated entities. However, "simple membership of a designated entity is not an offence," police say. Prime Minister Christopher Luxon. Photo: Screenshot Ultimately, the prime minister has the power. "The Prime Minister may designate an entity as a terrorist entity under this section if the Prime Minister believes on reasonable grounds that the entity has knowingly carried out, or has knowingly participated in the carrying out of, one or more terrorist acts," the Terrorism Suppression Act 2002 says. However, there's a lot of support and intelligence given before making that call. A Terrorist Designation Working Group chaired by New Zealand Police does the work of considering entities. It includes officials from the Department of Prime Minister and Cabinet, the National Assessments Bureau, the New Zealand Defence Force, Crown Law, the Ministry of Foreign Affairs and Trade and the New Zealand Security Intelligence Service. The working group then refers their information to the National Security Board, who make a determination whether or not to proceed with forwarding a recommendation to the prime minister. The prime minister also has to consult the Attorney-General before making the designation. Letters of recommendation are then given to the Commissioner of Police to be acted upon. "No specific factors are identified for the Prime Minister's consideration when exercising his discretion," police say. For example, in November Prime Minister Christopher Luxon designated the armed and political group Hezbollah a terrorist entity . "For any organisation [to be designated] ... we have to have evidence and we go through a number of tests under our legislation, that that organisation has knowingly undertaken terrorist activity," Luxon said then. "It's a standard process." Any entity on the list or a third party can also apply to the prime minister to make a case to get the designation revoked. Of course, whether or not that happens is up to the government to decide. The designations on the list are made for a period of three years, and can simply expire if not renewed. Judicial reviews of the decisions are also possible, police say. Leaders of the Proud Boys, a right-wing pro-Trump group, Enrique Tarrio (right) and Joe Biggs (left) embrace each other as the Proud boys members gather with their allies in a rally called "End Domestic Terrorism" against Antifa in Portland, Oregon on 26 September, 2020. Photo: AFP / John Rudoff / Anadolu Agency The government's New Zealand Gazette notification on the Proud Boys delisting is extremely brief - it simply says their designation expired on 19 June, and any person who deals with the property of the group cannot be prosecuted under the Terrorism Suppression Act. Ardern designated the Proud Boys and another known white supremacist group, The Base, in June 2022. The Base designation was renewed in June and remains on the terrorist entity list, but the Proud Boys no longer do. Byron Clark, a researcher into right-wing extremist groups , pointed out that US President Donald Trump pardoned the group's leader Enrique Tarrio earlier this year along with many others involved in the 6 January 2021 Capitol riot. "They operate as an unofficial, but tacitly acknowledged, militant wing of Trump's Make America Great Again movement, and I think that makes it politically more difficult to designate them terrorists now that that movement holds power in the United States." Battersby agreed the changing political situation in the US may have played part in the expiration. "If 'the good cause to suspect' case against the Proud Boys and The Base was founded on convictions following the 2021 US Capitol Hill riot, the presidential pardons - from a legal perspective - could remove those grounds." The prime minister's office told Stuff journalist Paula Penfold, who has extensively investigated the Proud Boys, that the group "remain on the radar ... and if any new information comes to hand, they will consider it." There is also a separate terror watch list of individuals the New Zealand Security and Intelligence Service keeps. In the past that list has been reported to be around 30 to 40 individuals. "Most people on watchlists turn out to be incapable or unwilling to do any real damage," Battersby said, but noted "it's excellent that police and the NZSIS pay attention to suspect individuals, this is valuable and necessary work." Ahamed Samsudeen took a knife from a supermarket shelf and stabbed six people in 2021. Photo: Supplied "New Zealand isn't safe - we have never been safe," Battersby said. "We have been fortunate in that we are politically insignificant globally - so no international terrorist group will waste any time here, and that anyone in New Zealand who has actually wanted to undertake acts of political violence has been mostly isolated and alone, largely unsuccessful inspiring any successive action." "Watchlists are one tool - they will catch the careless, lazy and unlucky; it is much more difficult to intercept a security conscious, careful planner (or group) which keep their heads down, or who play along legally (as the mosque shooter did) looking to exploit vulnerabilities which frankly exist everywhere." Battersby noted that both the Christchurch mosque shooter and Ahamed Samsudeen , who attacked shoppers at Auckland's LynnMall in 2021, were lone actors. "These people represent singular acts, so designation - in my opinion, is a largely unproductive exercise." Samsudeen had been under scrutiny for some time yet was still able to pull off his attack, while the mosque shooter "demonstrated what is possible when the risk is not identified," he said. "I think government terrorist group lists have some significant limitations," Clark said. "The Christchurch terrorist communicated extensively with far-right groups around the world, and even supported some financially, but wasn't formally a member of any, and the LynnMall terrorist was Isis-inspired but not actually a member of the organisation." Clark said it is still important that groups of concern in New Zealand continue to be monitored. "I do think there needs to be more scrutiny on far-right and Christian nationalist groups, the recent demonstrations by Destiny Church members targeting numerous minority groups demonstrate the threat they pose to social cohesion." Clark said that that last year's defunding of research into violent extremism research being done at the He Whenua Taurikura research centre in Wellington was also troubling. "The defunding of He Whenua Taurikura means we've lost the other side of counter terrorism, which is researching these groups and their beliefs in order to have a more informed public, and greater awareness of where potential threats could come from. Less of that work is being done now, and I don't think adding more groups to terrorist designation lists could make up for that loss." Still, New Zealand remains less vulnerable to terrorism than many places, Battersby said. "It is important to keep all of this in perspective, however - terrorists or violent extremists pose a risk, but a very small one in statistical terms when you consider something like our road toll. The most dangerous thing you will do today is drive to work, and drive home again - you are vastly more likely to be killed doing that, than you ever will be by a terrorist in New Zealand." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
