Donald Trump has put pressure on countries to cut ties with Russia as Vladimir Putin’s military bombards Ukraine with missiles.
The US president said trading partners would face an extra 10pc tariff if they aligned themselves with the “anti-American” group of Brics nations.
He wrote on Truth Social: “Any country aligning themselves with the anti-American policies of Brics, will be charged an additional 10pc tariff. There will be no exceptions to this policy.”
It came as Mr Trump announced tariffs of 25pc on Japan and South Korea, while South Africa would be hit by a 30pc levy.
There would be 40pc tariffs on Myanmar and Laos, and 25pc tariffs on Kazakhstan.
In near-identically worded letters to those countries’ leaders, Mr Trump said the tariffs would apply from August 1 because their trading relationships with Washington were “unfortunately, far from Reciprocal.”
Mr Trump warned the countries, which include some key US allies, of an escalation if they responded to the new US tariffs.
But he also said he was ready to modify levies “downwards” if they changed their trade policies.
Investors sold US stocks after the announcement, with all three of the key Wall Street indexes falling. The Dow Jones Industrial Average sank 1.3pc on the day, while S&P 500 dropped 1.1pc and the Nasdaq lost 1.2pc.
The president’s latest actions come days after a call with Ukrainian president Volodymyr Zelensky as he attempts to broker a peace deal between Kyiv and Moscow.
Mr Trump suggested in April that a truce between the two sides was “pretty close” but he has become increasingly frustrated with Putin’s regime, describing a phone call with the Russian leader last week as “disappointing”.
On Friday, Russia carried out its largest drone and missile barrage on Ukraine since it launched its invasion in February 2022, sending 530 drones and around a dozen missiles on Kyiv in an attack that killed at least two people.
The 11-member Brics alliance, including Russia, India and China, took aim at US trade policy as it held a summit in Brazil this weekend.
In a joint statement, leaders took a swipe at President Trump’s tariffs, which they said “distort trade and are inconsistent with WTO rules”.
Mr Trump said countries across the globe would find out at 5pm UK time what tariff rates they face under his latest trade onslaught.
He later revealed that he had imposed tariffs of “only” 25pc on both South Korea and Japan, which he said “demonstrates the strength and commitment of our trading relationship”.
President Trump’s new rates will take effect from August 1, in an apparent climbdown from his initial 90-day pause of steeper import taxes, which would have come to an end on July 9.
US Treasury secretary Scott Bessent acknowledged Mr Trump’s letters were an attempt “to move things along the next couple of days and weeks”.
Despite promises to work on 90 deals in 90 days, President Trump and his team have been able to complete only a limited trade deal with Britain and an agreement with Vietnam.
A long-promised deal with India has remained elusive, while a trade truce with China has appeared on shaky ground.
South Africa’s currency has fallen after Donald Trump announced his latest plan to impose tariffs, at 30pc, on the country.
The currently is currently down 1.4pc on the day against the dollar.
Wall Street has fallen further after Donald Trump has announced tariffs on more countries.
The US president said he would impose 40pc tariffs on Myanmar and Laos, 30pc tariffs on South Africa and 25pc tariffs on Kazakhstan.
The S&P 500 and Nasdaq have fallen by 1.2pc on the day, while the Dow Jones is down 1.5pc.
Donald Trump’s latest tariffs on Japan and South Korea are “unfortunate”, a former US trade negotiator has said.
Wendy Cutler, an ex-acting deputy US Trade Representative, who spent nearly three decades as an American diplomat, said: “Both [countries] have been close partners on economic security matters and have a lot to offer the United States on priority matters like shipbuilding, semiconductors, critical minerals and energy cooperation.
“Moreover, companies from both countries have made significant manufacturing investments in the US in recent years, bringing high-paying jobs to US workers and benefiting communities all around the country.”
World leaders are “begging” Donald Trump for a trade deal, the White House press secretary has claimed.
Karoline Leavitt was asked if leaders might not take Mr Trump’s threats of tariffs seriously because he keeps delaying them.
She replied: “They will take the letters seriously because they have taken the president seriously. And that’s why the president’s phone rings off the hook for world leaders all the time who are begging him to come to a deal…
“This delay is in the best interests of the American people.”
The US is “close” to major trade deals, the White House has claimed.
Karoline Leavitt, the White House press secretary, said: “Yes, we are close, but again the president wants to ensure these are the best deals possible…
“So I think he should be commended for the time and the effort he is putting into this. And the fact that he has announced a framework with China, a trade deal with the United Kingdom, a trade deal with Vietnam and many others to come in just a matter of six months is truly historic and is a testament to this president and his trade team.”
The European Union will not be receiving a letter from President Donald Trump setting out higher tariffs, EU sources have told Reuters.
Mr Trump said this evening that the US would impose a 25pc tariff on imports from Japan and South Korea beginning August 1, as he unveiled the first two of what he has said will be a wave of letters to trading partners outlining the new levies they face.
Donald Trump is extending his deadline before his “liberation day” tariffs are imposed until August 1.
The White House also said that only Japan and South Korea have so far been sent letters from Donald Trump imposing new tariffs – but that more are coming.
Karoline Leavitt, the White House press secretary, said: “There will be approximately 12 other countries that will receive notifications and letters directly from the president …
“The president will also sign an executive order today delaying the July 9 deadline to August 1.
“So the reciprocal tariff rate or these new rates that will be provided in this correspondence to these foreign leaders will be going out the door within the next month, or deals will be made.”
Markets are “spooked” by Donald Trump’s latest tariff announcement, an analyst has said.
Kathleen Brooks, research director at XTB, said: “After recently hitting record highs, stock markets in the US and elsewhere may have been underestimating the risks from the reciprocal tariff announcements. Thus, as we wait for more tariff announcements, we could see risk sentiment start to fade from the markets.
“For now, the dollar is benefitting as the yen and the won sag under the weight of tariffs, and bond yields are rising around the world on the back of the expected inflationary effect from tariffs.
“Once again, Trump is playing hardball when it comes to trade policy, and markets have been jolted awake to the risks this pose to global growth.”
Currently, the Dow is down 1.1pc, the S&P 500 is down 0.8pc and the Nasdaq is down by 0.9pc.
Wall Street’s fear index has surged to 4.29pc.
US stocks have dropped after Donald Trump announced new tariffs on South Korea and Japan.
The Dow Jones Industrial average is down 1.2pc, the S&P 500 is down 0.9pc and the Nasdaq is down 1pc.
Higher tariffs are likely to squeeze company profits.
Fawad Razaqzada, of City Index, said: “Investors should be alert to headline risk over the next 48 hours. The scope for last-minute deals is high, but so too is the possibility of renewed trade tensions.”
The price of a barrel of oil has risen 1pc today as signs of strong demand outweighed an increase in supply from Opec+ and the potential effect of US tariffs.
Brent crude is currently up 1.3pc at $69.17.
“The supply picture definitely looks to be elevating, however, the stronger demand is remaining above expectations as well,” Dennis Kissler at BOK Financial.
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Trump pressures countries to cut ties with Russia – latest updates – The Telegraph
