FINWIRES · TerminalLIVE
FINWIRES

Trump Administration Slaps Up to 12.5% Tariffs on 60 Nations Over Forced Labor Concerns

By

US President Donald Trump's administration on Thursday imposed new tariffs of up to 12.5% on South Korea, Japan and 58 other trading partners over forced labor concerns.

The imposition of tariffs followed Section 301 investigations into whether these economies fail to prohibit or enforce a ban on imports made with forced labor, according to White House statement on Thursday.

Japan, South Korea, and Switzerland face a net 12.5% cap, meaning their effective tariffs are reduced by their existing Most-Favored Nation (MFN) duties.

Australia and China will face a straight 12.5% tariff on all goods while Taiwan and the European Union will see tariffs capped at a net 10% (the difference between the MFN rate and 10%).

Southeast Asian nations received mixed treatment: Malaysia, Indonesia India, and Bangladesh were assigned a 10% tariff with additional textile tariff-rate quotas (TRQs) to encourage U.S. cotton and textile imports, while the Philippines, Singapore, Thailand, and Vietnam were lumped into the 12.5% category.

There is a proposed 10% tariff on goods from economies that have a forced labor import ban in place but are not yet effectively enforcing it.

The six economies falling into this category are Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan.

Related Articles

International

Australia's Unemployment Rate Holds Steady at 4.4% in June

Australia's seasonally adjusted unemployment rate remained flat at 4.4% in June compared with the previous month, data from the Australian Bureau of Statistics showed Thursday.The consensus forecast was also for 4.4%, according to Trading Economics.The total number of employed people increased by 76,300, bringing the total to 14.8 million."In June, we recorded a 76,000 person rise in employment, driven by a 47,000 person rise in part-time employment," said Sean Crick, the bureau's head of labor statistics.The participation rate rose 0.3 percentage points to 67% compared with the previous month. The underemployment rate, which refers to the share of workers who want and are available to work additional hours, inched up to 6.5% in June from 6.3% in May.The employment-to-population ratio rose 0.3 percentage points to 64%, the report said. Monthly hours worked across all jobs increased by 5 million hours to 2.01 billion hours in June.

ASX 200
International

Bank Indonesia Pauses Hikes, Keeps Interest Rates Unchanged

Bank Indonesia kept its key interest rates unchanged on Wednesday following the conclusion of its Board of Governors' meeting.The central bank left the 7-day reverse repurchase rate, or BI rate, unchanged at 5.75%, while also maintaining the deposit facility rate at 4.75% and the lending facility (LF) rate at 6.50%.According to a Reuters poll, 20 of 33 economists it surveyed had expected another 25-basis-point (bps) hike, while the rest had predicted no change.In a statement, Bank Indonesia said it is expanding its incentive policy and introducing more measures to increase foreign portfolio inflows, strengthen Rupiah exchange rate stability, and accelerate money market and foreign exchange market deepening.It is also working on increasing liquidity and reducing liquidity segmentation in the money market and banking industry.

^JKSE
International

South Korea's Q2 GDP Growth Slows to 3.7%

South Korea's GDP grew 3.7% year over year in the second quarter, according to an advance estimate released by the Bank of Korea on Thursday.The pace of growth weakened marginally from the 3.8% expansion recorded in the previous quarter, but beat the consensus forecast for a 3.5% expansion, tracked by Investing.com.On a quarter-over-quarter basis, the economy expanded 0.6%, also decelerating from the 1.8% increase in the previous quarter. The latest print, however, was up from the 0.4% consensus forecast.

^KOSDAQKOSPI