‘Barron’s Roundtable’ panelists Jack Otter, Ben Levisohn, Megan Leonhardt and Andrew Bary focus on the impression of tariffs on the auto trade and share high inventory picks.
President Donald Trump on Monday introduced the U.S. will impose 25% tariffs on items imported from Japan and South Korea.
Trump shared letters addressed to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung in posts on Reality Social.
The brand new levies will take impact on Aug. 1. If both Japan or South Korea elevate tariffs in retaliation, Trump mentioned in his letters that the U.S. tariffs will enhance by an equal quantity.
Shares reacted to the announcement, with the Dow Jones Industrial Common falling greater than 500 factors, or 1.1%, to a session low whereas the S&P 500 and the Nasdaq Composite every dropped 0.9%.
Trump’s letters mentioned it’s a “Great Honor to send you this letter in that it demonstrates the strength and commitment of our Trading Relationship,” and that the U.S. has agreed to proceed to work with Japan and South Korea “despite having a significant Trade Deficit” with every nation.
“Nevertheless, we have decided to move forward with you, but only with more balanced, and fair, TRADE. Therefore, we invite you to participate in the extraordinary Economy of the United States, the Number One Market in the World, by far,” Trump wrote.
He went on to inform Japan and South Korea that “there will be no Tariff” if firms in these nations “decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely – in other words, in a matter of weeks.”
“We look forward to working with you as your Trading Partner for many years to come. If you wish to open your heretofore closed Trading Markets to the United States, and eliminate your Tariff, and Non Tariff, Policies and Trade Barriers, we will, perhaps, consider an adjustment to this letter,” Trump added.
“These Tariffs may be modified, upward or downward, depending on our relationship with your Country. You will never be disappointed with The United States of America,” Trump wrote.
In April, Trump introduced a “reciprocal” tariff coverage underneath which U.S. tariffs on items imported from international nations could be primarily based on the dimensions of America’s bilateral commerce deficit with these nations.
Underneath the reciprocal tariffs introduced on the so-called “Liberation Day” occasion, imports from Japan would face a 24% tariff whereas items from South Korea would have a 24% tariff utilized to them – figures which might be largely in step with the 25% tariffs the president introduced in his letters.
