Donald Trump announced a 25% tariff on South Korea and Japan. Dow’s scored more than 550 points
Global Trade War Update: In a significant development of trade tariffs initiated by the U.S., U.S. President Donald Trump announced on Monday the new tax on Japan and South Korea each had 25%. In the same wording letter sent to officials in two Asian countries, the U.S. president said he would impose trade tariffs on trade tariffs while warning each of the international currency groups in each country, including India.
The U.S. president said he will start sending letters to specific countries about the latest news of tariffs at noon Monday (US time).
The development comes as the U.S. president negotiates trade talks with dozens of countries. Last week, the Indian delegation returned home after a week-long discussion with its U.S. counterpart. However, the potential U.S.-India trade agreement has not yet been terminated.
Trump imposes 25% of duties in Japan and South Korea, effective August 1
As Trump said, the new fees mentioned in the letter to countries will take effect from August 1.
BRICS additional tariffs
Trump mentioned the additional tariffs from the BRICS countries in his post on the Truth Society.
The development comes as a day after FIFA leaders described Trump’s round-trip tariffs as “less approval” as a combination of 11 countries known as the BRICS countries (including U.S. allies, Saudi Arabia and Indonesia) approached the end of a two-day summit in Rio de Janeiro.
The latest U.S. tariffs on Japan and South Korea are not much different from the April 2 announcement
It is worth noting that Trump’s latest tax rate on Japan and South Korea is 100 basis points of the duties announced in the “countdown” tariffs on April 2, when the Japanese allocated 24% of their duties and 25% of their South Korean products to South Korean products.
Here is the exact content of each letter:
- Despite the “huge trade deficit”, the United States hopes to continue to cooperate with every country
- Its relationship is “far from the countdown”
- Tariffs will come into effect on August 1st to all products sent to the United States
- These are “separate from all sector tariffs”
- “Transfer of goods to evade higher tariffs will be subject to higher tariffs”
- The United States will “do everything possible to obtain rapid, professional and conventional approval” in order to make it in the United States
- Countries that decide to raise tariffs will increase the figures at 25% currently charged by the U.S.
- If they wish to “eliminate your tariffs, non-tariffs, policy and trade barriers, we may consider adjustments to this letter”
- These tariffs will be modified based on relations with the United States
Wall Street Update | How Dow Jones Performs
Wall Street’s benchmark expanded intraday losses after news, with the Dow Jones Industrial Average (DJIA) down as much as 557 points, or 1.2%, to 44,271.5. The S&P 500, other U.S. blue chips, fell 64.1 points, or 1.0%, to an intraday low of 6,215.3.
