Trade deadline extended, increased tariffs on Japan and South Korea
Following recent announcements, reported by the New York Times, Aug. 1 will likely be the new deadline for imposing a 50% tariff on the European Union and an additional 25% tariff on Japan and South Korea. The announcement on the EU tariffs came on July 6 from US Treasury Secretary Scott Bessent.
Trump also announced on Monday that Aug. 1 would be the effective date for an additional 25% tariff on Japan and South Korea, according to the NYT.
“Dragging the tariff pause out to Aug. 1 means North Carolina companies will have endured 114 straight days of guessing what tax rate will hit their supply chains,” Donald Bryson, CEO of the John Locke Foundation, told the Carolina Journal. “They already face a 30% levy on Chinese inputs and now must price in a proposed 25% duty on goods from Japan and South Korea — with no clarity on what Washington might impose on everyone else. You can’t sign contracts, set holiday prices, or commit to new hires when the ground keeps shifting under you. Instead of extending uncertainty, the administration should end the tariff brinkmanship and restore the stable, rules-based trade environment businesses need to invest, grow, and keep costs down for families.”
The Trump administration also threatened increased tariffs for BRICS (Brazil, Russia, India, and China) and countries aligned with BRICS (recently expanded to include Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates). Trump has threatened an additional 10% tariff on any country aligning with the BRICS countries.
“Any Country aligning themselves with the anti-American policies of BRICS will be charged an ADDITIONAL 10% Tariff,” said President Donald Trump in a Truth Social post on Sunday. “There will be no exceptions to this policy. Thank you for your attention to this matter!”
Following the announcement, stocks fell, with the major indexes opening lower and declining after Trump announced the additional 25% tariff on Japan and North Korea, according to the Wall Street Journal. Trade-sensitive companies such as Lululemon, Estée Lauder, and John Deere declined.
“The proliferation of trade-restrictive actions, whether in the form of indiscriminate rising of tariffs and non-tariff measures, or protectionism under the guise of environmental objectives, threatens to further reduce global trade, disrupt global supply chains, and introduce uncertainty into international economic and trade activities, potentially exacerbating existing economic disparities and affecting prospects for global economic development,” wrote BRICS in a statement issued inRio de Janeiro during a 2-day summit over the weekend.
Trump originally imposed the 90-day pause on tariffs to give time to negotiate trade deals with various countries, but so far, only deals with the United Kingdom and Vietnam have been brokered.
“Trade deadline extended, increased tariffs on Japan and South Korea” was originally published on www.carolinajournal.com.
