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Donald Trump has granted a three -week postponement for countries to negotiate trade agreements with the US before “mutual” rates come into effect, which extensively extensively about steep taxes that Wall Street did not have.
White House Pers Secretary Karoline Leavitt said on Monday that Trump would extend the deadline for the mutual rates for all countries from July 9 to August 1.
Trump led serious market rates on 2 April this year when he unveiled the radical rates of 50 percent on most American trading partners. But markets stabilized after he paused them 90 days to July 9.
While the White House indicated on Monday that it would extend that deadline, Trump also renewed his threat to place large rates for large trading partners.
Trump said the US would impose 25 percent rates for the import of goods from Japan and Zuid -Korea, which would come into force on 1 August. The new rates are close to Trump’s original mutual rates in the two Asian countries.
In letters on his social social platform, Trump said that the trade deficit of the American goods with both countries was “a major threat to our economy and indeed our national security”.
In the letters, addressed to Shigeru Ishiba, the Japanese prime minister, and Lee Jae-Myung, the president of South Korea, Trump added that if both country are retaring his rates, then, regardless of the number you choose to lift them, will be added to the 25 percent that we charge “.
But in an indication that the proposed rates could be negotiated, he said that if the countries opened their markets “we might consider an adjustment … these rates can be changed, up or down, depending on our relationship with your country.”
Leavitt added that 12 other countries signed letters from Trump would outline new rates rates on Monday.
Trump already has a series of sectoral rates for goods from both Japan and South Korea, including a rate of 25 percent on cars and car parts and a rate of 50 percent on all imports of steel and aluminum.
An American officer confirmed that the goods that have already been subject to sectoral rates, such as cars and metals, would also not be influenced by the fresh 25 percent rate.
Washington also has national security rounds that can lead to rates for a series of other goods and industries, including space travel, pharmaceutical products, wood, copper, chips and consumer electronics.
In recent weeks, Trump has escalated his rhetoric against Tokyo, broadcast the crucial trading partner and attacks as “spoiled” because he refused to buy more American rice.
Weeks of negotiations between American and Japanese trading negotiators have produced a number of proposals aimed at breaking the trade addlock, including Japan that buys more American energy and agricultural products. But Tokyo has also demanded a complete exemption from the 25 percent automatic rates of Trump.
In the meantime, American talks with South Korea have been delayed by political unrest in Seoul after the accusation of former Korean President Yoon Suk Yeol.
The S&P 500 fell at a low point of the session after the announcement of the tariff rates on Japan and Korea, leaving around 0.9 percent in New York during lunch. The Japanese Yen and the Korean won earlier declines in order to act 1.1 percent lower against the dollar.
