Trump’s Latest Tariff Threats Trigger Criticism And Push For Negotiations

Topline

Japanese and South Korean officials on Tuesday continued to push for lowered tariffs from President Donald Trump’s administration, while China and Brazil criticized Trump’s latest threats to raise tariffs on the BRICS bloc of nations, as the president said his August 1 deadline for implementing the levies was not firm.

U.S. President Donald Trump has said his August 1 deadline for locking tariff deals is not 100% … More firm.

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Key Facts

After being informed that it would face a 25% tariff rate starting August 1, Japan’s top trade negotiator and Minister of Economic Revitalization, Ryosei Akazawa, held a 40-minute phone call with Commerce Secretary Howard Lutnick.

Akazawa told reporters that he is pushing for an agreement on a “package of measures,” but acknowledged that negotiations with Trump were “very tough.”

South Africa’s President Cyril Ramaphosa responded to Trump’s “unilateral” 30% tariffs on his country, saying the supposed reciprocal tariff rate was “not an accurate representation of available trade data.”

In response to a 32% tariff levied on it, Indonesia said its top negotiator, Minister for Economic Affairs Airlangga Hartarto, will arrive in Washington on Tuesday to meet his U.S. counterparts, as there was “still room to respond as conveyed by the US government.”

Malaysian officials stated that they will continue to engage in “good faith” discussions with their U.S. counterparts and work towards a “balanced, mutually beneficial” agreement.

Officials from Thailand—which was hit with a 36% rate—struck a more combative tone and said the U.S. has not considered its latest proposal and added: “We will not stop, we will continue to fight…so that Thailand will have the best offer possible.”

How Have Others Reacted To Trump’s New Tariff Threats?

Brazil’s President Luiz Inacio Lula da Silva pushed back against Trump’s threat to impose a 100% tariff on those who align themselves with the BRICS bloc of developing nations—a group which Trump said was “anti-American.” Lula, who is hosting the annual BRICS summit in Rio de Janeiro, addressed Trump’s threat at the end of the event, saying: “The world has changed. We don’t want an emperor.” The Brazilian leader then defended the existence of BRICS, saying it is made up of a “set of countries that want to find another way of organizing the world.” Earlier on Monday, Lula said Trump’s latest tariff threats were very “irresponsible.” The Kremlin’s top spokesperson, Dmitry Peskov, also refuted Trump’s “anti-American” label, saying the BRICS group “has never been, and will never be, aimed against any third parties.” However, Russian Foreign Minister Sergei Lavrov said Washington must face the reality of the U.S. dollar’s diminished global role but blamed it on the country’s “previous Democratic leadership” saying they began to “grossly abuse” the U.S. currency’s position in the global financial system—likely a reference to the various sanctions imposed on Russia.

What Has Trump Said About His New August 1 Deadline?

During his meeting with Israeli President Benjamin Netanyahu on Monday, Trump told reporters that his extended August 1 deadline for completing tariff negotiations was “not 100% firm.” He said, “If they call up and they say ‘we’d like to do something a different way,’ we’re going to be open to that. But essentially that’s the way it is right now.” Trump added he is willing to adjust the tariff rates if countries offer better concessions: “We’re not going to be unfair.”

Crucial Quote

Commenting on the state of the U.S. dollar in global trade, Lavrov said: “Trump directly accused Biden and his administration of undermining the role of the dollar for many years as early as during preparation for his inauguration. And indeed, that’s exactly what has happened — trust in it has fallen.”