Trump's Trade War Heats Up Ahead of August 1
US President Donald Trump has once again shocked the world by unveiling a series of trade measures ahead of the August 1 deadline. In his statement Wednesday, Trump announced 15% tariffs on imports from South Korea, matching their burden with Japan, and a high 25% tariff on India. He pressured Indian Prime Minister Narendra Modi with sharp criticism of India's continued purchase of energy and weapons from Russia.
Meanwhile, several Southeast Asian countries have reached agreements with the US. Thailand and Cambodia reportedly agreed to a ceasefire earlier this week, paving the way for a new trade deal. Meanwhile, talks with Taiwan are reportedly nearing completion, as both sides have reached "a certain level of consensus." Malaysian Prime Minister Anwar Ibrahim also said that Trump had informed him of the new tariffs, which would be announced on Friday. Anwar expressed his hope that these measures would not be too burdensome for the Malaysian economy.
One of the biggest surprises came from the metals sector, when Trump announced new tariffs on copper. Despite the high tariffs of up to 50%, some of the most commonly traded forms of copper were exempted, causing copper prices in New York to plummet to record lows. This move adds to uncertainty in the commodity markets, which have historically relied on stable signals from the US.
The White House has confirmed that starting August 1, countries without bilateral agreements with the US will face retaliatory tariffs ranging from 15% to 50%, depending on the sector and product. Trump has touted this policy as a way to revive the US manufacturing industry, increase government revenue, and improve its bargaining position in global negotiations. However, some economists, such as Rob Subbaraman of Nomura Holdings, believe this move creates more "noise" than real certainty, even though he acknowledges that Trump often follows through on his threats. (ayu)
Source: Newsmaker.id
