Trump signals flexibility on new tariff deadline amid trade tensions
However, during a dinner with Israeli Prime Minister Benjamin Netanyahu, Trump indicated flexibility, stating, 'I would say firm, but not 100 percent firm.' When pressed on whether the letters were his final stance, he added, 'I would say final—but if they call with a different offer, and I like it, then we'll do it.'
The initial tariffs, announced on April 2, included a baseline 10 percent levy on all imports. Following market instability, Trump suspended higher tariffs for 90 days, with the deadline originally set for Wednesday. The new August 1 extension allows further negotiations, though Trump's mixed signals have left trading partners uncertain.
Japan and South Korea face 25 percent tariffs, with Trump citing their trade relationships as 'far from reciprocal.' Indonesia, Bangladesh, Thailand, and Malaysia also received notices of increased duties. Thailand's acting prime minister, Phumtham Wechayachai, expressed hope for a 'better deal,' while Malaysia reaffirmed its commitment to dialogue with the US.
White House Press Secretary Karoline Leavitt defended the focus on Japan and South Korea, stating, 'It's the president's prerogative, and those are the countries he chose.' Meanwhile, US Treasury Secretary Scott Bessent hinted at upcoming trade announcements within 48 hours.
Market reactions were immediate, with the Nasdaq and S&P 500 dropping 0.9 and 0.8 percent, respectively. Trump also warned of additional 10 percent tariffs on nations aligning with BRICS, accusing them of 'anti-American policies.'
Despite the threats, diplomatic efforts continue. The European Commission reported a 'good exchange' between EU chief Ursula von der Leyen and Trump, signaling ongoing negotiations. - AFP
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