Escalating Tariffs: Asia's Struggle for Trade Concessions with the U.S.

Japan and South Korea are actively engaging in last-minute negotiations with the U.S. to soften the impact of new tariffs set by President Trump, scheduled to begin in August. The U.S. plans to impose tariffs ranging from 25% to 40% on goods from various countries, including Japan and South Korea.

This announcement has created a window for negotiation, with some countries seeking concessions to avoid potential economic disruptions. Japan is particularly concerned about its automobile industry, while South Korea aims for mutually beneficial outcomes. However, both nations express a firm stance on protecting their core economic sectors.

Despite the gravity of the situation, global markets showed little immediate reaction. However, economists warn that higher tariffs could lead to stagflation risks in the U.S. and impact international trade, putting pressure on Europe to stimulate domestic demand.

(With inputs from agencies.)