Tag: tariffs

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U.S., China talks sketch out rare earths deal, tariff pause for Trump and Xi to consider

Top Chinese and U.S. economic officials on Sunday hashed out the framework of a trade deal for U.S. President Donald Trump and Chinese President Xi Jinping to decide on later this week that would pause steeper American tariffs and Chinese rare earths export controls, U.S. officials said.

U.S. Treasury Secretary Scott Bessent said talks on the sidelines of the ASEAN Summit in Kuala Lumpur had eliminated the threat of Trump’s 100% tariffs on Chinese imports starting November 1. Bessent also said he expects China to delay implementation of its rare earth minerals and magnets licensing regime by a year while the policy is reconsidered.

Chinese officials were more circumspect about the talks and offered no details about the outcome of the meetings.

Trump and Xi are due to meet on Thursday on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea, to sign off on the terms. While the White House has officially announced the highly anticipated Trump-Xi talks, China has yet to confirm that the two leaders will meet.

“I think we have a very successful framework for the leaders to discuss on Thursday,” Bessent told reporters after he and the U.S. Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and top trade negotiator Li Chenggang for their fifth round of in-person discussions since May.

Bessent said he anticipates that a tariff truce with China will be extended beyond its November 10 expiration date, and that China will revive substantial purchases of U.S. soybeans after buying none in September while favouring soybeans from Brazil and Argentina.

U.S. soybean farmers “will feel very good about what’s going on both for this season and the coming seasons for several years” once the deal’s terms are announced, Bessent told the ABC program “This Week.”

Greer told the “Fox News Sunday” program that both sides agreed to pause some punitive actions and found “a path forward where we can have more access to rare earths from China, we can try to balance out our trade deficit with sales from the United States.”

China’s Li Chenggang said the two sides reached a “preliminary consensus” and will next go through their respective internal approval processes.

“The U.S. position has been tough, whereas China has been firm in defending its own interests and rights,” Li said through an interpreter. “We have experienced very intense consultations and engaged in constructive exchanges in exploring solutions and arrangements to address these concerns.”

Trump arrived in Malaysia on Sunday for a summit of the Association of Southeast Asian Nations, his first stop in a five-day Asia tour that is expected to culminate in Thursday’s face-to-face with Xi in South Korea.

After the weekend talks, Trump struck a positive tone, saying: “I think we’re going to have a deal with China”.

Trump had threatened new 100% tariffs on Chinese goods and other trade curbs starting on November 1, in retaliation for China’s expanded export controls on rare earth magnets and minerals.

China controls more than 90% of the world’s supply for the materials, which are essential for high-tech manufacturing from electric vehicles to semiconductors and missiles. The export controls and Trump’s threatened retaliation would disrupt a delicate six-month truce under which China and the U.S. reduced tariffs that had quickly escalated to triple-digit rates on each side.

The U.S. and Chinese officials said that, in addition to rare earths, they discussed trade expansion, the U.S. fentanyl crisis, U.S. port entrance fees and the transfer of TikTok to U.S. ownership control.

Bessent told NBC’s “Meet the Press” program that the two sides have to iron out details of the TikTok deal, allowing Trump and Xi to “consummate the transaction” in South Korea.

On the sidelines of the ASEAN Summit, Trump hinted at possible meetings with Xi in China and the United States.

“We’ve agreed to meet. We’re going to meet them later in China, and we’re going to meet in the U.S., in either Washington or at Mar-a-Lago,” Trump said.

Among Trump’s talking points with Xi are Chinese purchases of U.S. soybeans, concerns around democratically governed Taiwan, which China views as its own territory, and the release of jailed Hong Kong media tycoon Jimmy Lai.

The detention of the founder of the now-defunct pro-democracy newspaper Apple Daily has become the most high-profile example of China’s crackdown on rights in Hong Kong.

Trump also said he will seek China’s help in U.S. dealings with Moscow, as Russia’s war in Ukraine grinds on.

Tensions between the world’s two largest economies flared in the past few weeks as a delicate trade truce, reached after a first round of trade talks in Geneva in May and extended in August, failed to prevent the United States and China from hitting each other with more sanctions, export curbs and threats of stronger retaliatory measures.

China’s expanded controls of rare earths exports have caused a global shortage. That has prompted the United States to consider a block on software-powered exports to China, from laptops to jet engines, according to a Reuters report. (JapanToday)

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Trump says he’s ending all trade talks with Canada over TV ads


President Donald Trump said late Thursday that he was ending “all trade negotiations” with Canada because of a television ad opposing U.S. tariffs that he said misstated the facts and called “egregious behavior” aimed at influencing U.S. court decisions.

The post on Trump’s social media site came after Canadian Prime Minister Mark Carney said he aims to double his country’s exports to countries outside the U.S. because of the threat posed by Trump’s tariffs. Trump’s call for an abrupt end to negotiations could further inflame trade tensions that already have been building between the two neighboring countries for months.

Trump posted, “The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs.”

“The ad was for $75,000. They only did this to interfere with the decision of the U.S. Supreme Court, and other courts,” Trump wrote on his social media site. “TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A. Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”

Carney’s office didn’t immediately respond to a request for comment. The prime minister was set to leave Friday morning for a summit in Asia, while Trump is set to do the same Friday evening.

Earlier Thursday night, the Ronald Reagan Presidential Foundation and Institute posted on X that an ad created by the government of Ontario “misrepresents the ‘Presidential Radio Address to the Nation on Free and Fair Trade’ dated April 25, 1987.” It added that Ontario did not receive foundation permission “to use and edit the remarks.”

The foundation said it is “reviewing legal options in this matter” and invited the public to watch the unedited video of Reagan’s address.

Carney met with Trump earlier this month to try to ease trade tensions, as the two countries and Mexico prepare for a review of the U.S.-Mexico-Canada Agreement — a trade deal Trump negotiated in his first term, but has since soured on.

More than three-quarters of Canadian exports go to the U.S., and nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border daily.

In his own post on X last week, Doug Ford, the premier of Ontario, posted a link to the ad and the message: “It’s official: Ontario’s new advertising campaign in the U.S. has launched.”

He continued, “Using every tool we have, we’ll never stop making the case against American tariffs on Canada. The way to prosperity is by working together.”

Trump said earlier this week that he had seen the ad on television and said that it showed that his tariffs were having an impact.

“I saw an ad last night from Canada. If I was Canada, I’d take that same ad also,” he said then.

The president has moved to impose steep U.S. tariffs on many goods from Canada. In April, Canada’s government imposed retaliatory levies on certain U.S. goods — but it carved out exemptions for some automakers to bring specific numbers of vehicles into the country, known as remission quotas.

Trump’s tariffs have especially hurt Canada’s auto sector, much of which is based in Ontario. This month, Stellantis said it would move a production line from Ontario to Illinois. (JapanToday)

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Trump tariffs on kitchen cabinets and lumber come into force

New US tariffs on imported kitchen cabinets, vanities, lumber, timber and certain upholstered furniture have come into effect.

Under a proclamation signed by President Donald Trump last month, a 10% tariff on softwood lumber and timber imports will apply as of Tuesday.

A 25% tariff will also apply to imported kitchen cabinets and vanities – rising to 50% on 1 January – and a 25% tariff on upholstered wooden furniture will increase to 30%, unless new trade agreements are reached.

Trump has cited the need to protect US manufacturers and national security concerns for the move, but some in the industry worry the tariffs could raise housing costs and make customers postpone home renovations.

Tariffs are taxes on imported goods typically charged as a percentage of a good’s value and are paid to the US government by companies bringing in the products.

These firms may pass some or all of the extra cost on to their customers, which in this case means ordinary Americans and other US businesses.

The president’s tariff policies have been a key feature of his second term in the White House.

Trump has previously imposed sector-specific tariffs on steel, copper, aluminium, cars and vehicle components.

The additional global 10% tariffs on softwood lumber means the product from Canada – the second largest producer globally and a major US supplier – is now tariffed at more than 45%.

There is already a combined 35.16% US countervailing and anti-dumping duties placed on most Canadian producers as part of a decades-long dispute over the product between the two countries.

As part of existing trade deals with the US, duties on wood products from the UK will not exceed 10%, while those from the European Union and Japan will not exceed 15%.

The White House says Trump’s tariffs have been implemented “to protect against threats” to the US’s national security and to “strengthen manufacturing”.

But the National Association of Homebuilders said in a statement in late September that the new levies could raise housing costs.

“These new tariffs will create additional headwinds for an already challenged housing market by further raising construction and renovation costs,” said chairman Buddy Hughes.

According to Telsey Advisory Group managing director and senior retail analyst Cristina Fernández, retailers will have no choice but to raise prices on imported goods.

Speaking to the BBC’s US partner CBS News last month, she said retailers would try not to raise prices too much ahead of the holiday season, but “they can’t absorb 30% tariffs on top of other tariffs that are already in place”.

“They’ll have to pass through pricing, probably in the form of a double-digit price increase,” she added.

Last month Swedish furniture giant Ikea said the tariffs on furniture imports make doing business “more difficult”.

“The tariffs are impacting our business similarly to other companies, and we are closely monitoring the evolving situation,” the company said. (BBC)

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US court rules many of Trump’s global tariffs are illegal

A US appeals court has ruled that most tariffs issued by US President Donald Trump are illegal, setting up a potential legal showdown that could upend his foreign policy agenda.

The ruling affects Trump’s so-called “reciprocal” tariffs, imposed on most countries around the world, as well as other tariffs slapped on China, Mexico and Canada.

In a 7-4 decision, the US Court of Appeals for the Federal Circuit rejected Trump’s argument that the tariffs were permitted under an emergency economic powers act, calling them “invalid as contrary to law”.

The ruling will not take effect until 14 October, to give the administration time to ask the US Supreme Court to take up the case.

Trump criticised the appeals court and its ruling on Truth Social, saying: “If allowed to stand, this Decision would literally destroy the United States of America.”

He wrote: “Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end.

“If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong.”

Trump had justified the tariffs under the International Emergency Economic Powers Act (IEEPA), which gives the president the power to act against “unusual and extraordinary” threats.

Trump has declared a national emergency on trade, arguing that a trade imbalance was harmful to US national security. But the court ruled that imposing tariffs was not within the president’s mandate, and that setting levies was “a core Congressional power”.

In its 127-page judgement, the US Court of Appeals for the Federal Circuit said the IEEPA “neither mentions tariffs (or any of its synonyms) nor has procedural safeguards that contain clear limits on the president’s power to impose tariffs”.

The power to impose taxes and tariffs therefore continues to belong to Congress, the court ruled, and the IEEPA did not override this.

The court wrote that it was unlikely that, when Congress passed the law in 1977, it was intended to “depart from its past practice and grant the president unlimited authority to impose tariffs”.

“Whenever Congress intends to delegate to the president the authority to impose tariffs, it does so explicitly, either by using unequivocal terms like tariff and duty, or via an overall structure which makes clear that Congress is referring to tariffs,” the judges wrote.

The ruling comes in response to two lawsuits filed by small businesses and a coalition of US states.

They were brought after Trump’s executive orders in April, which imposed a baseline 10% tariff on almost every country in the world, as well as “reciprocal” tariffs intended to correct trade imbalances with dozens of countries. Trump declared the date to be America’s “liberation day” from unfair trade policies.

In May, the New York-based Court of International Trade declared the tariffs were unlawful. That decision was put on hold during the appeal process.

In addition to those tariffs, Friday’s ruling also strikes down tariffs on Canada, Mexico and China, which Trump argues are necessary to stop the importation of drugs.

However, the decision does not apply to other tariffs, like those imposed on steel and aluminium, which were brought in under a different presidential authority.

Ahead of the ruling, lawyers for the White House argued that invalidating the tariffs would lead to a 1929-style financial collapse, a stock market crash which led to the Great Depression.

“Suddenly revoking the president’s tariff authority under IEEPA would have catastrophic consequences for our national security, foreign policy, and economy,” they wrote in a letter.

“The president believes that our country would not be able to pay back the trillions of dollars that other countries have already committed to pay, which could lead to financial ruin.”

The ruling also raises questions about deals some nations agreed with the US for reduced tariffs rates.

The latest development means the case is now almost certain to head to the Supreme Court, which has in recent years taken a sceptical view toward presidents who try to implement sweeping new policies that are not directly authorised by Congress.

During Joe Biden’s presidency, the court expanded on what it called the “major questions doctrine” to invalidate Democratic efforts to use existing laws to limit greenhouse gas emissions by power plants and to forgive student loan debt for millions of Americans.

The top court’s nine justices, if they agree to consider the case, could weigh whether Trump’s expansive tariff programme is another example of presidential overreach or sufficiently grounded in law and presidential authority.

Even though the appellate court handed the president a defeat, the White House may take solace in the fact that only three of the court’s 11 judges were appointed by Republicans.

The Supreme Court has six Republican appointees, including three who were selected by Trump himself. (BBC)

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Bank of England cuts rate amid tariff concerns

The Bank of England on Thursday cut its key interest rate by a quarter point to four percent, the lowest level in 2.5 years, as it bids to boost a UK economy threatened by US tariffs.

Alongside the expected decision, the BoE forecast British economic growth to hit 1.25 percent this year, slightly better than the central bank’s previous estimate of one percent.

“The direct impact of US tariffs is milder than feared, but more general tariff-related uncertainty still weighs on sentiment,” the BoE said in a statement after studying data gathered by UK businesses.

London and Washington reached an agreement in May to cut levies of more than 10 percent imposed by US President Donald Trump on certain UK-made items imported by the United States, notably vehicles.

The quarter-point cut on Thursday was the BoE’s fifth such reduction since starting a trimming cycle in August 2024.

“Interest rates are still on a downward path, but any future rate cuts will need to be made gradually and carefully,” its governor, Andrew Bailey, said following Thursday’s decision.

The BoE voted 5-4 for the reduction, but not before an unprecedented second vote owing to a three-way split among its nine policymakers that prevented a necessary majority result.

Initially, four members voted for the reduction and four for no change. One member called for a larger cut of 0.50 percent, before switching in favour of a quarter-point drop, as voted for by Bailey.

It was the first time since the BoE became independent of the UK government in 1997 that a second vote had to be held.

“Looking ahead, interest rates are expected to be 3.5 percent in a year, which is slightly higher than before the (latest) meeting,” noted Kathleen Brooks, research director at XTB trading group.

Expectations that the rate will remain at four percent for longer boosted the British pound.

The BoE’s main task is to keep Britain’s annual inflation rate at 2.0 percent, but the latest official data showed it had jumped unexpectedly to an 18-month high in June.

The Consumer Prices Index increased to 3.6 percent as motor fuel and food prices stayed high.

The BoE on Thursday predicted that the annual inflation rate would peak at four percent next month.

Latest official figures show that Britain’s economy unexpectedly contracted for a second month running in May, and UK unemployment is at a near four-year high of 4.7 percent.

This is largely down to Prime Minister Keir Starmer’s Labour government increasing a UK business tax from April, the same month that the country became subject to Trump’s 10-percent baseline tariff on most goods.

Finance minister Rachel Reeves welcomed the latest rate cut, saying in a statement that it helps to “bring down the cost of mortgages and loans for families and businesses”.

The US Federal Reserve last week kept interest rates unchanged, defying strong political pressure from Trump to slash borrowing costs in a bid to boost the world’s biggest economy.

Asked about US tariffs following the decision, Fed Chair Jerome Powell told a press conference: “We’re still a ways away from seeing where things settle down.”

The European Central Bank is meanwhile widely expected to keep rates unchanged at its next meeting, with eurozone inflation around the ECB’s two-percent target.

But that could change, according to some economists, based on how Trump’s tariffs affect the single-currency bloc. (Punch)

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More than 60 countries scramble to respond to Trump’s latest tariffs

More than 60 countries around the world are scrambling to respond to the latest wave of US tariffs announced by Donald Trump, which came into force on Thursday.

Industry representatives in rich and poor countries warned of job losses as the tariffs upended a decades-old world trading system with rates ranging from 10% to 39%, 40% and 41% for Switzerland, Brazil and Syria.

All over the globe, leaders were attempting to put contingencies in place after Trump’s tariff threats turned to reality at a minute past midnight Washington time.

The Brazilian government said it was planning a state aid plan for companies affected. The president, Luiz Inácio Lula da Silva, said the duties were “unacceptable blackmail”.

Switzerland said it was seeking new talks with the US after a last-gasp mission to Washington by its president, Karin Keller-Sutter, failed to stop a 39% tariff blow that industry group Swissmem described as a “horror scenario”.

In a statement after an emergency meeting with Keller-Sutter, the Swiss cabinet said the tariffs would “place a substantial strain on Switzerland’s export-oriented economy”.

“For the affected sectors, companies and their employees, this is an extraordinarily difficult situation,” Keller-Sutter told reporters.

Taiwan is also continuing talks with the US. Its president, Lai Ching-te, said the 20% rate imposed on the key Washington ally was “temporary”.

Ireland, which is locked into an EU-US deal setting the tariff ceiling at 15%, said it would publish a new plan for diversifying an economy that relies heavily on US multinationals including Intel, Pfizer and Johnson & Johnson, all in Trump’s crosshairs.

Despite a last minute reprieve from Trump for Lesotho with tariffs dropping from 50% to 15%, the impoverished African nation said it was already hurting.

Textile industry players in the country – which produces jeans and other garments for US companies including Levi and Walmart – said the uncertainty around tariffs over the past few months had already devastated the sector, with orders cancelled and jobs cut.

Laos, which, like Brazil and Myanmar, was hit with a 40% rate, was among those handed a steep increase in import duties because of a trade imbalance with the US.

“A 40% tariff is just a nail in the coffin for any industry trying to ship to the United States,” Johannes Somers, the executive chair of the garment manufacturing firm Diep Vu, told Agence France Presse.

“We estimate about 20,000 workers or more could be impacted,” added Xaybandith Rasphone, the head of the Association of the Lao Garment Industry.

The sweeping “reciprocal” rates were announced by the White House a week ago, just before a previous 1 August deadline was due to elapse.

Just before the tariffs came into effect at midnight, Trump claimed on social media that billions of dollars would start flowing into the US as a result.

However, while the customs duties make countries’ exports more expensive and less competitive, they are payable on import and usually passed on to the customer.

“The only thing that can stop America’s greatness would be a radical left court that wants to see our country fail,” the president wrote in capital letters, referencing an ongoing case in the US court of appeals, which is considering whether he exceeded his authority in imposing the tariffs.

Some trading partners had already secured reductions through negotiations or by striking deals, including the UK, Thailand, Cambodia, Vietnam, Indonesia, the Philippines, Japan, South Korea, Pakistan and the EU.

The EU is the only trading partner where its baseline rate of 15% will include previous tariffs. It means, for example, cheeses that are normally hit with import duties of 14.9% will be taxed at 15% and not 29.9%.

However, the deal has only been implemented in part with tariffs of 27.5% still being imposed on EU car imports while the details of the US-EU deal are being finalised.

Hildegard Müller, the president of the German car industry federation, said the EU-US deal had “brought no clarity or improvement” to the industry.

“The sectoral tariffs on cars and automotive parts of 27.5%, which have been in effect since April and May respectively, remain in place and place a significant burden on German automakers and automotive suppliers, as well as on transatlantic trade.

“It is important that the promised agreement is reached now and the relief measures are implemented promptly,” she said.

India’s 25% tariff rate could rise to a total of 50% after Trump signed an executive order on Wednesday imposing an additional levy in retaliation for the country’s purchase of oil from Russia. Delhi has 21 days to respond. Trump has threatened to use the same tactic on other countries that supply Russia. (Guardian)

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Donald Trump announces 30% tariffs on goods from the EU and Mexico

Donald Trump announced on Saturday that goods imported from both the European Union and Mexico will face a 30% US tariff rate starting 1 August, in letters posted on his social media platform, Truth Social.

The tariff assault on the EU came as a shock to European capitals as the European Commission and the US trade representative Jamieson Greer had spent months hammering out a deal they believed was acceptable to both sides.

The agreement in principle put on Trump’s table last Wednesday involved a 10% tariff, five times the pre-Trump tariff, which the bloc already described as “pain”.

EU trade ministers will meet on Monday for a pre-arranged summit and will be under pressure from some countries to show a tough reaction by implementing €21bn ($24.6bn) in retaliatory measures, which they had paused until midnight the same day.

In his letter to Mexico’s leader, Trump acknowledged that the country had been helpful in stemming the flow of undocumented immigrants and fentanyl into the United States.

But, he said, the country had not done enough to stop North America from turning into a “Narco-Trafficking Playground”.

“We have had years to discuss our Trading Relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers,” Trump wrote in the letter to the EU. “Our relationship has been, unfortunately, far from Reciprocal.”

Claudia Sheinbaum said on Saturday she is sure an agreement can be reached before Trump’s threatened tariffs take effect on 1 August.

Speaking during an event in the Mexican state of Sonora, the Mexican president added that Mexico’s sovereignty is never negotiable.

The higher-than-expected rate has dealt a blow to the EU’s hopes of de-escalation and a trade deal and could risk a trade war with goods of low margins including Belgian chocolate, Irish butter and Italian olive oil.

The EU was informed of the tariff hike before Trump’s declaration on social media.

In a letter to the EU, Trump warned that the EU would pay a price if they retaliated: “If for any reason you decide to raise your Tariffs and retaliate, then, whatever the number you choose to raise them by, will be added onto the 30% that we charge.”

The European Commission president, Ursula von der Leyen, said the 30% rate would “disrupt transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic”.

She said the bloc was one of the more open trading places in the world, and still hoped to persuade Trump to climb down.

“We remain ready to continue working towards an agreement by August 1. At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” she said.

The French president, Emmanuel Macron, called on the bloc to “resolutely defend European interests”. Expressing Paris’s “very strong disapproval” of Trump’s announcement, Macron urged the EU to “step up the preparation of credible countermeasures by mobilising all instruments at its disposal” if the two sides failed to reach agreement by 1 August.

Germany’s economy minister, Katherina Reiche, called on the EU to “negotiate in a pragmatic manner”, while the Federation of German Industries (BDI) warned that a trade conflict between the two partners “harms economic recovery, innovation strength, and ultimately confidence in international cooperation.”

Italy’s prime minister, Giorgia Meloni, called for “goodwill  … to reach a fair agreement that can strengthen the west as a whole. It would make no sense to trigger a trade war between the two sides of the Atlantic.” She added that both sides should avoid “polarisation”.

The decision to hike the tariffs will also be another test of Trump’s ability to act in good faith in negotiations.

Brussels will view the latest threat as a maneuver by Trump to extract more concessions from the EU, which he once described as “nastier” than China when it came to trade.

Bernd Lange, head of the European Parliament’s trade committee, said on Saturday that Brussels should react immediately with countermeasures against Trump’s “outrageous” threat to hike tariffs on imports from the European Union.

The EU had been negotiating intensively with Washington for more than three weeks and had made concessions, said Lange.

“It is brazen and disrespectful to increase the tariffs on European goods announced on April 2 from 20% to 30%,” Lange told Reuters.

“This is a slap in the face for the negotiations. This is no way to deal with a key trading partner.”

While Trump indicated earlier this week that his new rates, also levelled against big economies including Japan, South Korea and Brazil, will not apply until 1 August, his latest tactic will create much distrust.

Europe should make it clear that these “unfair trade practices” were unacceptable, Lange said. (Guardian)

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Trump to slap allies Japan, South Korea with 25% tariffs

President Donald Trump announced tariffs of 25 per cent on Japan and South Korea on Monday, stepping up pressure on the two key US allies and a dozen other economies to reach trade deals with Washington.

Trump issued similar letters to South Africa, Malaysia, Myanmar, Laos and Kazakhstan, saying he would slap duties on their products ranging from 25 per cent to 40 per cent.

The president had said at the weekend that, starting from Monday, he would send a first batch of letters to countries informing them that he would reimpose harsh levies earlier postponed in April.

In near-identically worded letters to Japanese and South Korean leaders, Trump said the tariff hikes came as their trading relationships with Washington were “unfortunately, far from Reciprocal.”

The tariffs set out in Trump’s latest letters are due to take effect on August 1. He warned of further escalation if the countries involved retaliated against the duties.

Currently, the affected countries have been hit with a 10 per cent levy Trump imposed on almost all trading partners.

But Trump said he was ready to lower the new levels if countries changed their trade policies: “We will, perhaps, consider an adjustment to this letter.”

Japan’s Prime Minister Shigeru Ishiba said Sunday that he “won’t easily compromise” in trade talks with Washington.

White House Press Secretary Karoline Leavitt told reporters Monday that Trump would sign an order later in the day to delay his original July 9 deadline for steeper tariffs to take effect – postponing their imposition to August 1.

She added that besides Japan and South Korea, there would be approximately 12 other partners receiving letters from Trump soon.

With the deadline extension, Leavitt noted that Trump would set out the “reciprocal tariff rate” for partners in the coming month as negotiations continue.

Trump originally announced sweeping tariffs on world economies on what he called “Liberation Day” on April 2, claiming the United States was being “ripped off.”

Amid market turmoil, he then suspended the initial tariffs for 90 days, a deadline that would have expired Wednesday without the latest extension.

While the Trump administration had signalled hopes of striking dozens of deals by July – at one point boasting of “90 deals in 90 days”- there have been limited results so far.

Washington has unveiled pacts with only Britain and Vietnam, while the United States and China agreed to temporarily lower tariff levels on each other’s products that earlier reached three digits. (Punch)