Trump slaps allies Japan, S Korea with 25pc tariffs
Trump issued similar letters to South Africa, Malaysia, Myanmar, Laos and Kazakhstan, saying he would slap duties on their products ranging from 25 percent to 40 percent.
The president had said at the weekend that, starting from Monday, he would send a first batch of letters to countries informing them that he would reimpose harsh levies earlier postponed in April.
In near-identically worded letters to Japanese and South Korean leaders, Trump said the tariff hikes came as their trading relationships with Washington were 'unfortunately, far from Reciprocal.'
The tariffs set out in Trump's latest letters are due to take effect August 1. He warned of further escalation if the countries involved retaliated against the duties.
Currently, the affected countries have been hit with a 10 percent levy Trump imposed on almost all trading partners.
But Trump said he was ready to lower the new levels if countries changed their trade policies: 'We will, perhaps, consider an adjustment to this letter.'
Japan's Prime Minister Shigeru Ishiba said Sunday that he 'won't easily compromise' in trade talks with Washington.
White House Press Secretary Karoline Leavitt told reporters Monday that Trump would sign an order later in the day to delay his original July 9 deadline for steeper tariffs to take effect — postponing their imposition to August 1.
She added that besides Japan and South Korea, there would be approximately 12 other partners receiving letters from Trump soon.
With the deadline extension, Leavitt noted that Trump would set out the 'reciprocal tariff rate' for partners in the coming month as negotiations continue.
Trump originally announced sweeping tariffs on world economies on what he called 'Liberation Day' on April 2, claiming the United States was being 'ripped off.'
Amid market turmoil, he then suspended the initial tariffs for 90 days, a deadline that would have expired Wednesday without the latest extension.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Ringgit, rupiah weaken
BENGALURU: Currencies in emerging Asia dipped against the US dollar on Monday, while most regional stock indexes drifted further from their recent highs, as sparse details and confusion on US tariff deadlines and negotiations with major trading partners kept investors on edge. US President Donald Trump's threat of an extra 10% tariff on countries aligning with the 'anti-American policies' of the BRICS group, as well as sending letters to partners threatening about restoring April 2 tariffs exacerbated the risk-averse sentiment. BRICS is a group of emerging economies comprising Brazil, Russia, India and China, with Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates included as members last year. The Indian rupee hit a seven-session low on the day, while its Nifty 50 drifted lower. Thailand's baht slipped 0.7% to its weakest in four sessions, while South Korea's won, the Philippine peso, and the Malaysian ringgit hovered near multi-session lows. An MSCI index tracking emerging market currencies fell 0.3%. The US dollar index nudged higher to 97.219 in Asia afternoon trade, though it remained pinned around multi-year lows against the euro and the Swiss franc. Asian countries, heavily dependent on imports from China and US investments and businesses, are caught in an escalating trade war between the world's top two economies. They 'face an increasingly complex balancing act between maintaining US market access and Chinese investment flows, complicated by heavy dependence on Chinese intermediate goods and insufficient local supply chain alternatives,' analysts at Nomura wrote.
Business Recorder
2 hours ago
- Business Recorder
Netanyahu meets Trump at White House as Israel, Hamas discuss ceasefire
WASHINGTON/TEL AVIV: US President Donald Trump, hosting Israeli Prime Minister Benjamin Netanyahu at the White House on Monday, said the United States had scheduled talks with Iran and indicated progress on a controversial effort to relocate Palestinians out of Gaza. Speaking to reporters at the beginning of a dinner between U.S. and Israeli officials, Netanyahu said the United States and Israel were working with other countries who would give Palestinians a 'better future,' suggesting that the residents of Gaza could move to neighboring nations. 'If people want to stay, they can stay, but if they want to leave, they should be able to leave,' Netanyahu said. 'We're working with the United States very closely about finding countries that will seek to realize what they always say, that they wanted to give the Palestinians a better future. I think we're getting close to finding several countries.' Trump, who initially demurred to Netanyahu when asked about the relocating of Palestinians, said the countries around Israel were helping out. 'We've had great cooperation from … surrounding countries, great cooperation from every single one of them. So something good will happen,' Trump said. The president earlier this year floated relocating Palestinians and taking over the Gaza Strip to turn it into the 'Riviera of the Middle East.' Gazans criticized the proposal and vowed never to leave their homes in the coastal enclave. Human rights groups condemned the plan as ethnic cleansing. Trump and Netanyahu met for several hours in Washington while Israeli officials continued indirect negotiations with Hamas aimed at securing a U.S.-brokered Gaza ceasefire and hostage-release deal. Netanyahu returned to the Blair House guest house late on Monday, where he is due to meet Vice President JD Vance at 9:30 EDT on Tuesday. Netanyahu's visit follows Trump's prediction, on the eve of their meeting, that such a deal could be reached this week. Before heading to Washington, the right-wing Israeli leader said his discussions with Trump could help advance negotiations under way in Qatar between Israel and the Palestinian group. It was Trump's third face-to-face encounter with Netanyahu since returning to office in January, and came just over two weeks after the president ordered the bombing of Iranian nuclear sites in support of Israeli air strikes. Trump then helped arrange a ceasefire in the 12-day Israel-Iran war. Trump said his administration would be meeting with Iran. 'We have scheduled Iran talks, and they … want to talk. They took a big drubbing,' he said. Trump's Middle East envoy Steve Witkoff said the meeting would take place in the next week or so. Trump said he would like to lift sanctions on Iran at some point. 'I would love to be able to, at the right time, take those sanctions off,' he said. Iranian President Masoud Pezeshkian said in an interview released on Monday that he believed Iran could resolve its differences with the United States through dialogue. Trump and his aides appeared to be trying to seize on any momentum created by the weakening of Iran, which backs Hamas, to push both sides for a breakthrough in the 21-month Gaza war. The two leaders, with their top advisers, held a private dinner in the White House Blue Room, instead of more traditional talks in the Oval Office, where the president usually greets visiting dignitaries. Outside, hundreds of protesters, many wearing Palestinian keffiyeh scarves and waving Palestinian flags, gathered near the White House, waving banners that read 'Stop Arming Israel' and 'Say No to Genocide'. They also called for Netanyahu's arrest, referring to the International Criminal Court's arrest warrant against the Israeli leader over alleged war crimes in Gaza. Netanyahu met earlier on Monday with Witkoff and Secretary of State Marco Rubio. He planned to visit the U.S. Capitol on Tuesday to see congressional leaders. During their meeting, Netanyahu gave Trump a letter that he said he had used to nominate the U.S. president for the Nobel Peace Prize. Trump, appearing pleased by the gesture, thanked him. Ahead of their visit, Netanyahu told reporters Israeli negotiators were driving for a deal on Gaza in Doha, Qatar's capital. Israeli officials also hope the outcome of the conflict with Iran will pave the way for normalization of relations with more of its neighbors such as Lebanon, Syria and Saudi Arabia. Second day of Qatar talks Witkoff, who played a major role in crafting the 60-day ceasefire proposal at the center of the Qatar negotiations, will travel to Doha this week to join discussions there, White House press secretary Karoline Leavitt told reporters earlier on Monday. In a sign of continued gaps between the two sides, Palestinian sources said Israel's refusal to allow the free and safe entry of humanitarian aid into Gaza remains the main obstacle to progress in the indirect talks. Israel insists it is taking steps to get food into Gaza but seeks to prevent militants from diverting supplies. On the second day of negotiations, mediators hosted one round and talks were expected to resume in the evening, the Palestinian sources told Reuters. The U.S.-backed proposal envisages a phased release of hostages, Israeli troop withdrawals from parts of Gaza and discussions on ending the war entirely. Hamas has long demanded a final end to the war before it would free remaining hostages; Israel has insisted it would not agree to halt fighting until all hostages are released and Hamas dismantled. Trump told reporters last week that he would be 'very firm' with Netanyahu on the need for a speedy Gaza deal and that the Israeli leader also wanted to end the war. Some of Netanyahu's hardline coalition partners oppose halting military operations but, with Israelis having become increasingly weary of the Gaza war, his government is expected to back a ceasefire if he can secure acceptable terms. A ceasefire at the start of this year collapsed in March, and talks to revive it have so far been fruitless. Meanwhile, Israel has intensified its military campaign in Gaza and sharply restricted food distribution. Gazans were watching closely for any sign of a breakthrough. 'I ask God almighty that the negotiating delegation or the mediators pressure with all their strength to solve this issue, because it has totally became unbearable,' said Abu Suleiman Qadoum, a displaced resident of Gaza city. The Gaza war erupted when Hamas attacked southern Israel in October 2023, killing around 1,200 people and taking 251 hostages. Some 50 hostages remain in Gaza, with 20 believed to be alive. Israel's retaliatory war in Gaza has killed over 57,000 Palestinians, according to the enclave's health ministry. Most of Gaza's population has been displaced by the war and nearly half a million people are facing famine within months, according to United Nations estimates. Trump has been strongly supportive of Netanyahu, even wading into domestic Israeli politics last month by criticizing prosecutors over a corruption trial against the Israeli leader on bribery, fraud and breach-of-trust charges that Netanyahu denies.
Business Recorder
2 hours ago
- Business Recorder
Goldman Sachs lifts S&P 500 return forecasts on Fed outlook, large-cap stocks
SINGAPORE: Goldman Sachs has raised its three-, six- and 12-month return forecasts for the S&P 500, citing expectations of U.S. interest rate cuts and continued fundamental strength of major large-cap stocks as key drivers of its positive outlook. The Wall Street bank has revised its S&P 500 return forecasts, projecting a 3% gain over three months and an 11% gain over 12 months, targeting index levels of 6,400 and 6,900, respectively. 'Earlier and deeper Fed easing and lower bond yields than we previously expected, continued fundamental strength of the largest stocks, and investors' willingness to look through likely near-term earnings weakness support our revised S&P 500 forward P/E forecast of 22 times from 20.4 times,' analysts said in a note late on Monday. For the index's six-month return, Goldman Sachs has raised its forecast to +6%, projecting a year-end level of 6,600, and up from its previous estimate of 6,100. Wall Street closed at record highs last week, buoyed by signs of resilience in the country's labour market, which defied investor fears of a slowing economy. After a selloff in April following U.S. President Donald Trump's 'Liberation Day' tariff announcements, stocks have rebounded as hopes for trade deals and potential Federal Reserve rate cuts eased investor uncertainty. 'Recent inflation data and corporate surveys indicate less tariff pass-through so far than we expected,' the analysts said. 'However, we expect the digestion of tariffs to be a gradual process, and large-cap companies appear to have some buffer from inventories ahead of the increase in tariff rates.' The analysts maintained their earnings-per-share growth forecasts for the S&P 500 at +7% for both 2025 and 2026, but flagged that risks remain on both the upside and downside. They plan to reassess these estimates following the second-quarter earnings season.
