The Asian markets winced largely from Trump’s latest notice of collective bargaining prices for some of his trading partners, since the US President apparently drove the start date for new taxes on August 1st.
On Monday Trump’s white house unveiled Flat 25% tariffs in Japan and South Korea, two of the United States trading partners. These are about the same level that Trump originally threatened in April. But now US trade partners have until August 1 to negotiate new trade agreements instead of a previously imposed period of July 9th.
Japan’s Nikkei 225 closed on Tuesday by 0.3% higher. South Korea’s Kospi rose by 1.8%.
In His letters According to Japan and South Korea, Trump found that goods that were “deported to avoid” a higher tariff, to assume this higher tariff “, are not specified.
A previously announced act After Vietnam has raised a tariff of 40% on the goods by the Southeast Asian country, the Trump government still has to inform how the “circulation” sees it as a concept.
The US President also threatened to further increase the tariffs if either Japan or South Korea returns with their own measures.
Both the Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae Myung expressed optimistic on Tuesday that they could find an agreement that can be found for both sides before August 1st.
Elsewhere in Asia, Hong Kong’s Hang Seng Index has risen by 1% from 3:30 a.m. India’s useful 50 is flat. Australia’s S&P/ASX 200 also flat.
Trump informed the reporters on Monday that the tariffs were not “100% firm”, which means that there were negotiations before August 1st. A total of 14 letters were sent and more than half for the economies in Asia.
Southeast Asia
Many other economies, especially in Southeast Asia, were also beaten on Monday with new collective bargaining prices, from 25% to 40%. While some of these rates were lower than in April, they are still an escalation from the flat 10% tariff for all US imports.
The 90-day tariff break for commercial negotiations should originally take place on Wednesday. This period seems to have been extended to August 1st, which enables more time for negotiations.
And that could be greatly appreciated to appreciate the breathing space for Southeast Asian economies rely on the USA As a large export market.
Indonesia, Thailand, Malaysia and Cambodia have all offered to buy more US products such as energy or agricultural goods.
Malaysia, already in the negotiations with Washington, said on Tuesday that negotiations with the USA will continue. The country now receives a tariff of 25%, one percentage point higher than what was proposed on the “liberation day”.
The Malaysia Ministry of Investment, Trade and Industry said in a statement that the country was “committed to committed to a balanced, mutual and comprehensive trade agreement with the United States”.
In Thailand, finance minister Pichai Chunhavajira expressed Trust that the country could negotiate a lower tariff rate according to the 36% announced by Trump.
The day before Pichai listed Thailand had offered to reduce import taxes to 90% for US products and to eliminate taxes to many articles. He believed that the United States does not have to take the proposal in Thailand into account, and these continued discussions will lead to a positive result by August 1st.
The Indonesian Minister of Coordination for Economic Affairs Airlangga Hartarto is expected to arrive in Washington on July 8th to meet US representatives. Last week Indonesia said With the United States, the Southeast Asian country in the United States committed 34 billion US dollars in commercial and investment agreements, which will now record a 32% tariff set for its products, which was proposed on April 2.
Cambodia received a tariff of 40%on Monday, among the 49%originally threatened in April. The Southeast Asian country got that One of the highest tariff rates on the day of liberationpreviously agreed to lower tariffs for US goods.
