The tariff crisis Trump's tariff policy

China's response to Trump's threat of tariffs: "Benefits no one"

China opposes the use of tariffs as a tool to exert political pressure on other countries. This was stated by the Chinese Foreign Ministry in a comment on Monday, according to Reuters.

- The use of tariffs benefits no one, said spokesperson Mao Ning at a press conference.

The statement comes after Donald Trump threatened to impose an additional 10 percent tariff on countries that choose to join the Brics cooperation, a bloc consisting of emerging economies.

EU: Target set for Wednesday after "good exchange" with the US

Ursula von der Leyen and Donald Trump had a "good exchange" on the phone on Sunday. This is what a spokesperson for the European Commission said, according to Reuters.

The EU is still aiming to reach a trade agreement before Trump's deadline expires on July 9.

- We want to reach an agreement with the US. We want to avoid tariffs. We believe they cause us harm. Our goal is to reach solutions where both parties win, not where both lose, the spokesperson said at a daily press briefing.

Sources: EU avoids Donald Trump's tariff letter

The EU is avoiding Trump's tariff letter in which he announced sharply increased tariffs against several countries on Monday evening. This is what sources told Reuters, who believe that the Union is now aiming for exemptions from the US's broad import tariffs of 10 percent.

During the day, the US has sent out a series of letters announcing new tariff rates to several countries - including Japan, South Korea and Myanmar.

Among possible concessions, tariffs on aircraft parts, medical equipment and alcohol are being discussed. At the same time, the EU Commission warns that there are no guarantees against new tariff threats from the US.

Trump: 25 percent tariffs on Japan and South Korea

The United States will impose tariffs of 25 percent on goods from Japan and South Korea starting August 1. Donald Trump published the announcement in the form of letters to the countries' leaders on Truth Social.

"However, we have decided to move forward with you, but with more balanced and fair trade. Therefore, we invite you to participate in the extraordinary economy of the United States - the world's largest market," both letters say.

It continues to state that the tariffs should actually be much higher to completely eliminate the trade deficit the United States has with the countries. The letters end with a threat of higher tariffs if Japan and South Korea retaliate. 

Trump postpones deadline for tariffs until August

The US is postponing the planned deadline for new tariffs from July 9 to August 1, White House spokeswoman Karoline Leavitt said at a press conference. The announcement comes after the US announced 25 percent tariffs on goods from Japan and South Korea starting August 1.

– The president will also sign an executive order today that postpones the July 9 deadline to August 1, she said.

At the same time, twelve other countries will receive notice of upcoming trade tariffs during the day, and more countries are expected to receive notice in the coming days, according to Leavitt.

– Keep an eye on Truth Social, she said.

Economists on Trump's new tariffs: "Relatively aggressive"

The 25 percent tariffs that Donald Trump has imposed on Japan and South Korea are significant, according to economists that Dagens Næringsliv spoke to.

– The markets may react negatively to the announcement, says Robert Næss, investment director at Nordea, to the business newspaper.

He believes that other countries cannot expect lower tariff rates in the future.

Harald Magnus Andreassen, chief economist at Sparebank 1 Markets, calls it “relatively aggressive” and goes on to say that “no one could have expected higher tariffs than those that came this afternoon”.

Per Altenberg, chief economist at Kommerskollegium, comments on the announcement as follows to TT:

– It is a very large increase and we have already seen that the stock market has reacted negatively to this. It is like a wet blanket over at least the US’s trade relationship with Japan and South Korea, he says. 

New tariff letters to Kazakhstan, Laos, South Africa, Malaysia and Myanmar

Donald Trump continues to publish the tariff letters he has sent out to a number of countries. On Truth Social, it appears that Malaysia and Kazakhstan can expect tariffs of 25 percent on August 1. South Africa will be hit with a 30 percent tariff, while Laos and Myanmar will be hit with a 40 percent tariff.

Earlier in the evening, Trump announced that Japan and South Korea would also face 25 percent tariffs in August. All letters are nearly identical and include threats that tariffs could be increased if the countries retaliate.