The conditions and threats in case of retaliation
In the letters, Trump stressed that any retaliation by Japan and South Korea will be followed by Further increases in rates. “If for any reason you decide to raise your duties, whatever the percentage chosen, it will be added to 25% that we already apply,” he said. These duties are added to those already imposed on steel, aluminum and cars. In response to these potential tensions, Trump proposed to the companies of the two countries to transfer part of their production to the US territory, promising a rapid process for the necessary authorizations.
The context of negotiations with the European Union
The President of the European Commission Ursula von der leyen He defined these crucial negotiations and confirmed that Europe will have to “show strength”. A coreper meeting, the committee that represents the member countries at the EU, is underway to update the states on the situation. In recent days, Von der Leyen and Trump have felt by telephone, in what has been called a positive conversation.
The impact of the new rates
The new rates could have a significant impact on key sectors of the two Asian countries, such as the automotive and electronic one. The news also shook the markets: after the announcement, Wall Street indices have fallenwith the Dow Jones downhill by 1.1%. Meanwhile, the Brics countries (Brazil, Russia, India, China and South Africa) have expressed concern for the Unilateral Tariff measures of the United States. In a joint declaration, they underlined the risk of damage to the global economy.
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