President Donald Trump’s postponement of a sweeping tariff deadline to 1 August has renewed hopes for trade deals with key partners, but left smaller exporters and businesses grappling with uncertainty.
Trump’s extension, described as a “final warning” to 14 countries facing tariffs of up to 40%, reflects his frustration with slow-moving negotiations. “No extensions will be granted,” he said on Tuesday, after previously signalling the original deadline of 9 July.
The move offers a temporary reprieve to countries such as Japan and South Korea, which are actively negotiating exemptions. Japanese Prime Minister Shigeru Ishiba said his government would seek a deal that protects national interests, particularly for the automotive sector. South Korean President Lee Jae Myung also pledged to intensify talks, though analysts noted he would avoid major concessions.
Former U.S. trade officials said Trump, who also unveiled a 50% tariff on copper and warned of impending levies on pharmaceuticals and semiconductors, prefers direct tariffs to prolonged trade talks.
“This is an added threat—he’s put a new number to it and extended the deadline,” said William Reinsch, a senior trade adviser at the Center for Strategic and International Studies.
Smaller countries such as South Africa, Thailand and Malaysia face higher rates—30%, 36% and 25% respectively— without clear prospects for relief. South Africa has challenged the justification, noting its average tariff is just 7.6%, but said it would resume urgent talks with U.S. officials.
The European Union, which did not receive a new letter or change to its 20% rate, may be pursuing a carve-out deal similar to that agreed with the UK, including exemptions for aircraft, auto parts and medical equipment.
Stephen Miran, chair of The White House Council of Economic Advisers, told Fox News more deals could be finalised before the end of the week if sufficient concessions are made.
But the evolving policy has left businesses in limbo. German firm Lapp Holdings said shifting tariffs had paralysed supply chain decisions.
“We are already incurring losses simply because of the uncertainty,” said CTO Hubertus Breier.
California furniture maker DeMejico is also under strain from steel tariffs. President Robert Luna said the firm was importing components separately to manage rising costs and warned further duties on Mexico could threaten its future.
“My biggest worry is just keeping the company alive,” he said.
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The Philippines remains under a "severe threat" from China despite recent efforts by Washington and Beijing to ease tensions, Philippine Defence Secretary Gilberto Teodoro said on Saturday (30 May).
Russia has recalled its ambassador to Armenia for consultations, citing Yerevan's growing rapprochement with the European Union. The move is seen as the latest sign of deteriorating relations between the longtime allies ahead of Armenia's parliamentary election on 7 June.
Thai rescuers say five people have been pulled alive from a flooded cave in remote Laos, where seven villagers became trapped after heavy rain cut off access underground.
A group of Azerbaijani civil society organisations has called for increased scrutiny of Swiss building materials giant Holcim, citing court rulings and ongoing investigations linked to its subsidiary Lafarge's activities during the Syrian conflict.
The World Health Organization (WHO) says ongoing conflict, funding pressures and international travel restrictions are complicating efforts to contain a fast-growing Ebola outbreak in the Democratic Republic of Congo (DRC).
Thai rescuers say five people have been pulled alive from a flooded cave in remote Laos, where seven villagers became trapped after heavy rain cut off access underground.
Russia and Kazakhstan signed 15 agreements during President Vladimir Putin’s state visit to Astana on Thursday (28 May), including deals on Kazakhstan’s first nuclear power plant and expanded oil cooperation with Russia.
European companies are continuing to deepen their presence in China, with nearly seven in ten firms maintaining or expanding their supply chains despite global efforts to diversify, according to a new survey by the EU Chamber of Commerce.
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The dual-class share structure outlined in SpaceX’s initial public offering (IPO) filing, which gives chief executive Elon Musk outsized control, has reignited one of Wall Street’s longest-running debates over corporate governance.
Kevin Warsh will be sworn in as chair of the U.S. Federal Reserve on Friday as policymakers consider higher interest rates to tackle inflation linked to the Trump administration’s Iran policy.
A government-mediated agreement has suspended an 18-day walkout by about 48,000 Samsung union members, easing fears of damage to South Korea's economy and global chip supply.
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