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Japan Today
15-07-2025
- Business
- Japan Today
Trump sets 19% tariff on Indonesia goods in latest deal; EU readies retaliation
By David Lawder and Philip Blenkinsop President Donald Trump on Tuesday said the U.S. would impose a 19% tariff on goods from Indonesia under a new agreement with the Southeast Asian country and said more deals were in the works as he continued to press for what he views as better terms with trading partners and a path to reducing a massive U.S. trade deficit. The pact with the relatively minor U.S. trading partner is among the handful struck so far by the Trump administration ahead of an August 1 deadline for tariffs on most U.S. imports to rise again, and it came as the top U.S. trading partner - the European Union - readied retaliatory measures should talks between Washington and its top trading partner fail. As that deadline approaches, talks were underway with other trading partners eager to avoid yet more levies being imposed on their exports to the U.S. beyond a baseline 10% on most goods that has been in place since April. It is a policy regime - rolled out often chaotically by Trump - that has upended decades of trends toward lower trade barriers, often roiling global financial markets and economic activity along the way. Based on Trump tariff announcements through July 13, Yale Budget Lab estimates the U.S. effective average tariff rates will rise to 20.6% from between 2% and 3% before Trump's return to the White House in January. Consumption shifts would bring the rate down to 19.7%, but it's still the highest since 1933. Trump outlined an Indonesia deal that had rough contours resembling a pact struck recently with Vietnam, with a flat tariff on exports to the U.S. roughly double the current 10% and no levies placed on U.S. exports going there. It also included a penalty rate for so-called trans-shipments of goods from China via Indonesia, and a commitment to buy some U.S. goods. "They are going to pay 19% and we are going to pay nothing ... we will have full access into Indonesia, and we have a couple of those deals that are going to be announced," Trump said outside the Oval Office. In addition, Trump said later on his Truth Social platform that Indonesia had agreed to buy $15 billion of U.S. energy products, $4.5 billion of American farm products and 50 Boeing jets, though no time frame for the purchases was specified. TRUMP: INDIA TALKS MOVING SAME WAY Indonesia's total trade with the U.S. - totalling just under $40 billion in 2024 - does not rank in the top 15, but it has been growing. U.S. exports to Indonesia rose 3.7% last year, while imports from there were up 4.8%, leaving the U.S. with a goods trade deficit of nearly $18 billion. The top U.S. import categories from Indonesia, according to U.S. Census Bureau data retrieved on the International Trade Centre's TradeMap tool, last year were palm oil, electronics equipment including data routers and switches, footwear, car tires, natural rubber and frozen shrimp. Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters in a text message: "We are preparing a joint statement between U.S. and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon." Trump had threatened the country with a 32% tariff rate effective August 1 in a letter sent to its president last week. He sent similar letters to roughly two dozen trading partners this month, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20% up to 50%, as well as a 50% tariff on copper. The August 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs. Some investors and economists have also noted Trump's pattern of backing off his tariff threats. Since launching his tariff policy, Trump has clinched only a few deals despite his team touting an effort to bring home "90 deals in 90 days." So far, framework agreements have been reached with the United Kingdom and Vietnam, and an interim deal has been struck with China to forestall the steepest of Trump's tariffs while negotiations continue between Washington and Beijing. Trump said talks with India were moving in a similar direction. "India basically is working along that same line. We're going to have access to India. And you have to understand, we had no access into any of these countries. Our people couldn't go in. And now we're getting access because of what we're doing with the tariffs," he said. EU READIES RETALIATION The breakthrough with Indonesia came as the European Commission, which oversees trade for the EU, gets set to target 72 billion euros ($84.1 billion) worth of U.S. goods - from Boeing aircraft and bourbon whiskey to cars - for possible tariffs if trade talks with Washington fail. Trump is threatening a 30% tariff on imports from the EU from August 1, a level European officials say is unacceptable and would end normal trade between two of the world's largest markets. The list, sent to EU member states and seen by Reuters on Tuesday, pre-dates Trump's move over the weekend to ramp up pressure on the 27-nation bloc and responds instead to U.S. duties on cars and car parts and a 10% baseline tariff. The package also covers chemicals, medical devices, electrical and precision equipment as well as agriculture and food products - a range of fruits and vegetables, along with wine, beer and spirits - valued at 6.35 billion euros. Following a meeting of EU ministers in Brussels on Monday, officials said they were still seeking a deal to avoid Trump's heavy tariff blow. But EU trade chief Maros Sefcovic said those at the meeting expressed unprecedented resolve to protect EU businesses using European countermeasures if negotiations with Washington fail to produce a deal. © Thomson Reuters 2025.
Yahoo
08-07-2025
- Business
- Yahoo
Analysis-Trump's tariff deadline delay brings hope, confusion to trade partners, businesses
By David Lawder, Andrea Shalal and Timothy Aeppel WASHINGTON (Reuters) -U.S. President Donald Trump's latest tariff delay provided some hope to major trade partners Japan, South Korea and the European Union that deals to ease duties could still be reached, while bewildering some smaller exporters such as South Africa and leaving companies with no clarity on the path forward. Trump's form letters to 14 countries informing them of planned tariff rates of 25% to 40% provided what he called a final warning on his "reciprocal" tariffs, while pushing back Wednesday's previous deadline to August 1, a date he said on Tuesday was final, declaring: "No extensions will be granted." The move reflects Trump's frustration with trade negotiations that are proving lengthier and more complicated than the "90 deals in 90 days" that he expected, trade experts and administration officials say. The president, who announced on Tuesday a 50% tariff on imported copper and said long-threatened levies on semiconductors and pharmaceuticals were coming soon, said he has long favored simple tariffs over tedious trade talks that often involve red lines for some countries and their own requests for U.S. concessions. Japanese Prime Minister Shigeru Ishiba focused on the positive, saying his government would press ahead with negotiations toward a deal that "benefits both countries, while protecting Japan's national interest." Facing a 25% general U.S. tariff, Japan wants relief for its export-dependent auto industry from Trump's separate 25% automotive tariffs. It also has resisted demands for increased purchases of American rice. Japan, once viewed as an early favorite for a deal, faces an upper house election on July 20 and too many concessions could put Ishiba's ruling Liberal Democratic Party at risk. "These countries are not folding. They're not giving him what he wants, so he's added another threat," said William Reinsch, a former U.S. Commerce Department official who is a senior trade adviser at the Center for Strategic and International Studies. "He's put a new number to it and extended the deadline." South Korea, where President Lee Jae Myung has been in office less than a month, also pledged to intensify talks for "a mutually beneficial result" while analysts warned he would not be "a pushover" for Trump or put South Korea at a disadvantage to Japan. Stephen Miran, chairman of the White House's Council of Economic Advisers, told Fox News on Tuesday more deals were possible even before the end of this week, as long as countries made concessions deemed worthy by Trump. India, in particular, looked close to a deal, but prospects were less clear for smaller countries such as South Africa, Thailand and Malaysia, which face tariffs of 30%, 36% and 25%, respectively. South African President Cyril Ramaphosa pushed back on Trump's 30% tariff rate, calling it out of sync with an average 7.6% South African tariff rate. But he instructed his negotiators to "urgently engage" with Trump's team on a framework first submitted by the South African side on May 20. The Trump administration's negotiating time may be eaten up with larger partners, such as the EU, which did not get a warning letter or a change to its prescribed 20% tariff rate, double the 10% baseline. Sources familiar with the EU talks have told Reuters a deal could involve carve-outs for aircraft and parts, medical equipment and alcoholic spirits. They say the EU also wants certain automakers to export to the U.S. at rates below the 25% auto tariff. Such a deal would be similar to a framework agreement with the United Kingdom that had carve-outs for autos, steel and aircraft engines. FINAL SQUEEZE After announcing his global "Liberation Day" tariffs of 11%-50% in early April, Trump quickly dialed them back to 10% for most countries amid bond market turmoil to buy time for negotiations to lower foreign tariffs and trade barriers. Ryan Majerus, another former U.S. Commerce official, said Trump's three-month pause had not produced the desired results, and now the president was seeking to maximize his negotiating leverage. "They're going to pressure-test things and see how far they can go, particularly for countries where there hasn't been any movement in the talks," said Majerus, who is a partner at Washington's King and Spalding law firm. Steadier markets and strong economic data give Trump some room to maneuver, but time is short and "the more granular you get in negotiating these things, the tougher the sledding gets," he added. The deadline extension provides no relief to companies that are trying to keep up with Trump's tariffs. Executives say the rapidly shifting tariff landscape has paralyzed decision-making as they try to adjust their supply chains and cost structures to avoid tariff-induced price hikes. "No company can really prepare for this," said Hubertus Breier, chief technology officer for Germany's Lapp Holdings, a family-owned maker of cables, wires and robotics for factories. "We are already incurring losses simply because of the uncertainty of the daily changing situation." Lapp has difficult choices - absorb additional costs or pass them on to customers. Assuming permanently higher prices and costs, however, could threaten its long-term existence, Breier added. DeMejico, a family business in Valencia, California with a plant in Mexico that builds traditional Spanish and Mexican-style furniture, is struggling to adapt to Trump's 50% tariffs on imported steel. Robert Luna, the company's president, said the firm is importing heavy steel latches, hinges and trim parts separately to simplify the tariff calculation process and installing them at its Los Angeles-area showroom. The tariffs and higher U.S. wage costs are already inflating prices, and DeMejico faces further cost increases on furniture if Trump hits Mexico with a reciprocal tariff, Luna said. "It's hard to do anything about this as a small business owner, so I just try to be stoic and see what happens," Luna said, adding: "My biggest worry is just keeping the company alive." Luna said he thought the Trump administration was "setting up the foundation to train people to pay tariffs." Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
US, India push for trade pact after Trump strikes deal with Vietnam, sources say
By David Lawder and Manoj Kumar WASHINGTON/NEW DELHI (Reuters) -U.S. and India trade negotiators were pushing on Wednesday to try to land a tariff-reducing deal ahead of President Donald Trump's July 9 negotiating deadline, but disagreements over U.S. dairy and agriculture remained unresolved, sources familiar with the talks said. The push comes as Trump announced an agreement with Vietnam that cuts U.S. tariffs on many Vietnamese goods to 20% from his previously threatened 46%. Trump said that U.S. products could enter Vietnam duty free, but details were scant. Trump threatened a 26% duty on Indian goods as part of his April 2 "Liberation Day" reciprocal tariffs, which were temporarily lowered to 10% to buy time for negotiations. Sources in India's commerce ministry said that a trade delegation from India was still in Washington a week after arriving for talks that started last Thursday and Friday. They may stay longer to conclude a deal, but without compromising on key agricultural and dairy issues, the sources said, adding that it was unacceptable to lower tariffs on genetically modified corn, soybeans, rice and wheat grown in the U.S. Prime Minister Narendra Modi's government "doesn't want to be seen as surrendering the interests of farmers - a strong political group in the country," one of the sources said. However, India is open to lowering tariffs on walnuts, cranberries and other fruits, along with medical devices, autos and energy products, the source said. A U.S. source familiar with the talks said that there were "indications that they are close" and negotiators have been told to prepare for a potential announcement. The source added that "there's been intense and constructive effort to close a deal. I think both sides understand the strategic importance, beyond the economic importance, of closing a deal." Trump echoed those sentiments on Tuesday, telling reporters on Air Force One that he could reach a deal with India that would cut tariffs for both countries and help American companies compete in India's market of 1.4 billion consumers. At the same time, Trump cast doubt on a potential deal with Japan, saying he may impose a tariff of 30% or 35% on Japanese goods, well above the 24% duty rate he announced on April 2. Japan is seeking to lower separate 25% automotive and steel tariffs that Trump imposed. Spokespersons for the U.S. Trade Representative's office, the Commerce Department and the U.S. Treasury did not respond to request for comment on the state of trade negotiations with India and other countries. A spokesperson for India's embassy in Washington did not respond immediately to a request for comment.
Yahoo
30-05-2025
- Business
- Yahoo
Trump says China has 'totally violated' Geneva deal with US on tariffs, minerals
By David Lawder, Michael Martina, Katharine Jackson WASHINGTON (Reuters) -U.S. President Donald Trump said on Friday that China had violated an agreement with the U.S. to mutually roll back tariffs and trade restrictions for critical minerals and issued a new veiled threat to get tougher with Beijing. "China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!," Trump said in a post on his Truth Social platform. Trump said that he made a "fast deal" in mid-May with Chinese officials for both countries to back away from triple-digit tariffs for 90 days. He said he did this to save China from a "devastating" situation, factory closings and civil unrest caused by his tariffs of up to 145% on Chinese imports. Trump did not specify how China had violated the agreement made in Geneva, Switzerland, or what action he would take against Beijing. Asked later on Friday in the Oval Office about the China deal, Trump said: "I'm sure that I'll speak to President Xi, and hopefully we'll work that out." RARE EARTHS LICENSES But a U.S. official told Reuters that it appears China was moving slowly on promises to issue export licenses for rare earths minerals. The deal called for China to lift trade countermeasures that restrict its exports of the critical metals needed for U.S. semiconductor, electronics and defense production. "The Chinese are slow-rolling their compliance, which is completely unacceptable and it has to be addressed," U.S. Trade Representative Jamieson Greer told CNBC, without specifying how that would happen. Indeed, Reuters reported on Friday that global auto executives are sounding the alarm on an impending shortage of rare-earths magnets from China – used in everything from windshield-wiper motors to anti-lock braking sensors – that could force the closure of car factories within weeks. Liu Pengyu, a spokesperson for China's embassy in Washington, said China has maintained communications on trade matters with U.S. counterparts since the Geneva talks, but raised concerns about U.S. export controls. "Recently, China has repeatedly raised concerns with the US regarding its abuse of export control measures in the semiconductor sector and other related practices," Liu said in a statement. "China once again urges the US to immediately correct its erroneous actions, cease discriminatory restrictions against China and jointly uphold the consensus reached at the high-level talks in Geneva." Reuters reported earlier this week that the U.S. has ordered a broad swath of companies to stop shipping goods to China without a license and revoked some existing export licenses, according to three people familiar with the matter. Products affected include design software and chemicals for semiconductors, butane and ethane, machine tools, and aviation equipment, these sources said. A U.S. official with knowledge of the talks told Reuters that only tariffs and Chinese nontariff countermeasures were covered in Geneva, and that U.S. export controls were not part of the deal. Spokespersons for the White House, the U.S. Treasury and the U.S. Trade Representative's Office did not respond to requests for comment. CHINA TALKS 'STALLED' On Thursday, Treasury Secretary Scott Bessent told Fox News Channel that U.S. trade talks with China were "a bit stalled" and that getting a deal over the finish line will likely need the direct involvement of Trump and Chinese President Xi Jinping. The U.S.-China agreement two weeks ago to dial back triple-digit tariffs for 90 days prompted a massive relief rally in global stocks, and along with other pauses on Trump's import taxes has lowered the effective U.S. tariff rate to the mid-teens from around 25% in early April. It was less than 3% when Trump took office in January. The temporary truce between Washington and Beijing, however, had done nothing to address the underlying reasons for Trump's tariffs on Chinese goods, mainly longstanding U.S. complaints about China's state-dominated, export-driven economic model, leaving those issues for future talks. NO CHICKEN Major U.S. stock indexes ended little changed on Friday after Trump's complaint about China's compliance. Trump's social media post comes two days after a reporter infuriated him by asking for his reaction to Wall Street's new term for bets that he will back off from extreme tariff actions - the "TACO" trade, an acronym coined by a Financial Times columnist for "Trump Always Chickens Out." Trump responded by saying it was "the nastiest question." "I chicken out? Oh, I've never heard that. You mean because I reduced China from 145% that I set, down to 100 and then to another number?" Trump said, later adding: "It's called negotiation." Trump's tariff strategy also suffered a major setback on Wednesday when the U.S. Court of International Trade ruled that his broad global tariffs, including those on China, were invalid because he exceeded his authority under an emergency powers law used to back them. An appeals court has issued a temporary stay for the decision, allowing them to remain in place for now. JAPAN TALKS Japan's top trade negotiator, Ryosei Akazawa, met with Bessent and Commerce Secretary Howard Lutnick in Washington for 130 minutes on Friday, the Japanese government said in a statement. It added that the two sides would continue to talk ahead of the G7 leaders' summit in Canada next month where Trump and Japanese Prime Minister Shigeru Ishiba are set to meet in person. In a later briefing to reporters, Akazawa said that while progress had been made in talks with the U.S., it was Japan's unchanged position that any deal will require the U.S. to drop all the tariffs, including those applied to automobiles, auto parts, aluminum and steel. "If our requests to do that are met, we may be able to come to an agreement," Akazawa told Japanese media gathered at the Japanese embassy in Washington. "But if that is not possible, then it will be difficult for us to agree to a deal." Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
Trump says China has 'totally violated' Geneva deal with US on tariffs
By David Lawder and Katharine Jackson WASHINGTON (Reuters) -U.S. President Donald Trump on Friday said China had violated an agreement with the U.S. to mutually roll back tariffs and trade restrictions for critical minerals and issued a new veiled threat to get tougher with Beijing. "China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!," Trump said in a post on his Truth Social platform. Trump said that he made a "fast deal" in mid-May with Chinese officials for both countries to back away from triple-digit tariffs for 90 days. He said he did this to save China from a "devastating" situation, factory closings and civil unrest caused by his tariffs of up to 145% on Chinese imports. Trump's message did not specify how China had violated the agreement made in Geneva, Switzerland and what action he would take against Beijing. But a U.S. official told Reuters said it appears China was moving slow on promises to issue export licenses for rare earth minerals. U.S. Trade Representative Jamieson Greer also told CNBC that China was not in compliance with the Geneva deal, adding: "The Chinese are slow-rolling their compliance, which is completely unacceptable and it has to be addressed." Greer said the flow of critical minerals from China, which had been cut off by Chinese trade countermeasures, has not resumed as called for by the Geneva agreement. A spokesperson for China's embassy in Washington did not immediately respond to a request for comment. Spokespersons for the White House, the U.S. Treasury and the U.S. Trade Representative's Office also did not respond to requests for comment. On Thursday, Treasury Secretary Scott Bessent told Fox News Channel that U.S. trade talks with China were "a bit stalled" and getting a deal over the finish line will likely need the direct involvement of Trump and Chinese President Xi Jinping. Two weeks after breakthrough negotiations that resulted in a temporary truce in the trade war between the world's two biggest economies, Bessent said progress since then has been slow, but said he expects more talks in the next few weeks. The U.S.-China agreement to dial back triple-digit tariffs for 90 days prompted a massive relief rally in global stocks. But it did nothing to address the underlying reasons for Trump's tariffs on Chinese goods, mainly longstanding U.S. complaints about China's state-dominated, export-driven economic model, leaving those issues for future talks.
