President Trump on Monday began to unveil his “United States’ Tariff Letters” by threatening 25% of South Korea and Japan, the two best trading partners.
New rates that are not planned to come into force by 1 August are closely monitored by what the President first announced on the day of liberation this spring, before he suggested a 90 -day pause, which was scheduled for July 8th.
April Trump announced about 25% South Korean rate and 24% for Japan.
A short Monday afternoon published other letters from a dozen other trading partners from Malaysia (25%rate) to South Africa (30%) to Serbia (35%).
In general, the rates of Monday watched what the Trump promised in April, but with a few exceptions. Cambodia has fallen from 49% to 36%. Laos increased from 48%to 40%and Myanmar decreased by 4 percentage points by up to 40%.
All letters also suggested that more negotiations could be held with a short, noting that if these targeted countries change their trade policy, “we might consider this letter.”
The shares drowned on the news on Monday, even when the letters were paired with a deferred term, it means that none of these countries will see changes in the norm at least this week.
Karoline Leavitt, secretary of the White House press, confirmed on Monday afternoon that the executive order would postpone the short -term “mutual” tariffs to transfer the term of these nations and more than 100 more from July 8. Until August 1
Leavitt added that in the coming days, many other countries have to receive letters, saying, “Watch the truth in social.”
Negotiations with both South Korea and Japan will certainly last for the next three weeks, as both nations seek to avoid tariffs, but Monday’s step from the President emphasized his wish to aggressively move around the country slowly than he expected.
Monday’s announcement somewhat reflects Japan’s victory, which briefly threatened 35% of the tariffs in the comments a few days ago, where it called the nation “so damaged”.
Meanwhile, South Korea was initially considered a country near the front of the line and reportedly was even reported last weekend in Washington’s negotiations, but the progress is partly slow for the recent election of the nation.
If the short follows these rates, Paul Ashworth from Capital Economics said Monday afternoon that at least the starting point of these two countries can at least have a relatively minor effect on average effective tariff percentages.
Ashworth estimates that a short sequence of half exports from two nations with main industries such as cars, electronics and drugs subject to Trump’s tariffs and are expected to at least meet these new rates.
Letters for nations leaders often offer identical language in many cases. The Trump also stated the “strength and commitment of our trade relationship” to South Korea and Japan, while Lambininka “for these long -term and very regular trade defects he blamed in both countries.
President Donald Trump, who spoke at the Salute to America celebration at the Ajova State Fair des Moines in the city on July 3. (Andrew Caballero-Reynolds/AFP via Getty Images) ยทAndrew Caballero-Reynolds via Getty Images
“If for some reason you decide to increase the rates, then whatever the number you choose to raise them, we will be included in the 25%we will be charged,” he noted in his letters, adding that the goods from the other country’s crossing will also face a higher rate.
Transfer was the main question of Trump – and last week with Vietnam was included in the agreement in response to Chinese shippers, often seeking practice to avoid tariffs.
The total number of letters in the coming days could be 100.
Perhaps the highest shoes that need to be fallen in the coming days could be a renewal where everything is with the European Union, a block that represents the highest US trading partner.
The EU has previously announced that he would like to agree to a 10% universal rate, but Trump often promised much higher positions, as these are many questions about how specific sectors, such as “Autos”, are treated for the continent’s digital service fees, so the negotiations were slowly negotiated.
A European Commission spokesman said on Monday he was still expecting an agreement this week, but the short promised the rate of 50% of the tariffs if the agreement did not reach.
Read more: What does the Trump tariffs mean to the economy and your wallet
Another closely monitored negotiations are with India, which reportedly said he had submitted his final tender and said the agreement was in the hands of Trump.
Monday’s report was also announced after the Trump continued to include other issues in trade negotiations, including overnight report that it plans to use the 10% rate to discourage nations from the lining against it via an intergovernmental organization, consisting of 10 countries known as bricks.
As for the market reaction, Terry Haines from Pangea’s policy has suggested that the initial market reaction may be equal, especially if the transactions are announced later this week, and Monday’s unilateral threat of tariffs.
“Soon after this shallow fall, it is very likely that there will be several trading transactions in the middle of the middle of the week,” he wrote, adding, “Particularly observing Stage 1 in the US and Indian agreement.”
This story was updated with additional changes.
Ben Werschkula is a Yahoo Finance correspondent in Washington.
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