Economy
US debuts new tariffs, including on Japan, in letters to 14 nations
U.S. President Donald Trump ramped up his trade war on Monday by informing 14 nations, from powerhouse suppliers and allies such as Japan and South Korea to minor trade players, that they now face mostly sharply higher tariffs from a new deadline of Aug. 1.
The imposition of levies starting at 25% on U.S. imports rattled Wall Street, with the S&P 500 Index falling sharply, although markets in Asia were taking the news in their stride.
In letters so far to 14 countries, Trump hinted at opportunities for additional negotiations, even while warning that reprisals would draw a like-for-like response.
“If, for any reason, you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added on to the 25% that we charge,” Trump told Japan and South Korea in letters released on his Truth Social platform.
The higher tariffs take effect from Aug. 1, and notably will not combine with previously announced sectoral tariffs, such as those on automobiles and steel and aluminum.
Countries have been under pressure to conclude deals with the U.S. after Trump unleashed a global trade war in April that roiled financial markets and sent policymakers scrambling to protect their economies.
Trump’s executive order on Monday extends to Aug. 1 the Wednesday deadline for negotiations.
Asked if the deadline was firm, Trump replied, “I would say firm, but not 100% firm. If they call up and they say we’d like to do something a different way, we’re going to be open to that.”
It was unfortunate that Trump was hiking tariffs on imports from Japan and South Korea, two of the closest U.S. allies, but there was still time for a breakthrough in negotiations, said former U.S. trade negotiator Wendy Cutler.
“While the news is disappointing, it does not mean the game is over,” added Cutler, the vice president of the Asia Society Policy Institute.
Trump said the U.S. would impose tariffs of 25% on goods from Tunisia, Malaysia and Kazakhstan, with levies of 30% on South Africa, Bosnia-Herzegovina, climbing to 32% on Indonesia, 35% on Serbia and Bangladesh, 36% on Cambodia and Thailand and 40% on Laos and Myanmar. A deal with India was close, Trump added.
Japanese Prime Minister Shigeru Ishiba said some progress had been made on avoiding higher tariffs, of up to 35%, that Trump had suggested recently.
“We have received a proposal from the United States to swiftly proceed with negotiations towards the newly set August 1 deadline, and that, depending on Japan’s response, the content of the letter could be revised,” Ishiba told a Cabinet meeting on Tuesday.
South Korea said it planned to step up trade talks with the United States, and that exemptions or reductions in auto and steel tariffs must be included in any trade deal.
Thailand said it was confident it could get a competitive tariff similar to those in other countries.
In neighboring Malaysia, the trade ministry said it acknowledged U.S. concerns on trade imbalances and market access, while believing that constructive engagement and dialogue remained the best path forward.
In Indonesia, Southeast Asia’s largest economy, an official said Jakarta still had room to negotiate on tariffs, and its top negotiator would meet U.S. trade representatives in Washington.
A Bangladesh team in Washington was scheduled to have further trade talks on Wednesday, an official said.
The U.S. is the main export market for Bangladesh’s readymade garments industry, which accounts for more than 80% of its export earnings and employs 4 million people.
“This is absolutely shocking news for us,” Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association, told Reuters on Tuesday. “We were really hoping the tariffs would be somewhere between 10-20%. This will hurt our industry badly.”
South African President Cyril Ramaphosa said the 30% U.S. tariff rate was unjustified, since 77% of U.S. goods face no tariffs in his country. Ramaphosa’s spokesperson said his government would continue to engage with the U.S.
Market drop
U.S. stocks fell in response to Monday’s news, with the S&P closing down about 0.8%, although Asian share markets were mostly resilient, with Japan’s Nikkei recouping early losses and South Korean stocks jumping 1.8%.
“There’s going to be a lot of volatility as the headlines start to emerge, as more of these letters come out, and as the negotiations really come to the fore ahead of that Aug. 1 deadline,” said Tapas Strickland, head of market economics at National Australia Bank.
Earlier on Monday, U.S. Treasury Secretary Scott Bessent said he expected several trade announcements in the next 48 hours.
Only two deals have been struck so far, with the U.K. and Vietnam.
China has until Aug. 12 to reach a deal with the White House to prevent Trump from reinstating additional import curbs after Washington and Beijing agreed in June on a tariff framework. On Tuesday, China warned the United States against reinstating tariffs on its goods, and said it could retaliate against countries striking deals with the U.S. to cut China out of supply chains.
Vietnam and China agreed to boost trade and investment ties between the two countries during a meeting on the sidelines of the BRICS summit in Brazil, Vietnam’s government said on Tuesday.
Trading blocs
The European Union will not be receiving a letter setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday.
The EU still aims to reach a trade deal by Wednesday after European Commission President Ursula von der Leyen and Trump had a “good exchange,” a commission spokesperson said.
The EU has been torn over whether to push for a quick and light trade deal or leverage its economic clout for a better outcome.
Trump also threatened leaders of developing nations in the BRICS grouping meeting in Brazil with an additional 10% tariff if they adopt “anti-American” policies.
The bloc includes Brazil, Russia, India and China among others.
President Recep Tayyip Erdoğan on Friday announced a fresh increase in export financing, raising the annual limit for rediscount loans to TL5 billion while unveiling a target of boosting Türkiye’s exports to distant markets to $50 billion by 2028.
Speaking at the Turkish Exporters Assembly’s (TIM) 33rd Ordinary General Assembly and Export Champions Awards Ceremony in Istanbul, Erdoğan said the government would continue supporting exporters through expanded financing as Türkiye seeks to maintain its export-driven growth.
The president said the annual limit for rediscount loans, which had previously been raised from TL300 million to TL4.5 billion, would now increase to TL5 billion with an additional TL500 million in funding.
“We had previously raised the annual limit for rediscount loans from TL300 million to TL4.5 billion. With an additional TL500 million, we are increasing this figure to TL5 billion,” Erdoğan said.
He also announced that Türkiye aims to raise exports to distant countries to $50 billion by 2028, describing the target as part of Ankara’s broader strategy to diversify export markets and sustain economic momentum.
Erdoğan noted that Türkiye has recorded uninterrupted economic growth for 23 consecutive quarters, highlighting exports as one of the key drivers of that performance.
Congratulating companies and business leaders honored during the ceremony, Erdoğan said export success requires perseverance, determination and hard work, adding that he understands the challenges faced by exporters through his own background in trade.
Sales from industrial goods manufactured in Türkiye reached 24.03 trillion Turkish liras ($608.3 billion) in 2025, the country’s statistical authority said Friday.
Türkiye produced 1.216 million automobiles, 8.329 million household refrigerators and freezers, 334 million tons of ready-mixed concrete, 1.266 million combi boilers, 9.557 million tons of detergents and washing preparations, and 774,970 motorcycles last year, according to annual industrial product statistics released by the Turkish Statistical Institute (TurkStat).
The total value of sales from products manufactured by enterprises climbed 27.7% year-on-year in 2025, up from TL 18.815 trillion in 2024 and TL 13.344 trillion in 2023.
Food industry products accounted for 15.5% of total sales, followed by basic metals at 10.2%, motor vehicles, trailers and semi-trailers at 9.7%, and fabricated metal products at 6.1%.
High-technology products made up 3.6% of the total sales value in manufacturing last year. Low- and medium-low-technology products together accounted for 67.5%, while medium-high-technology products had a 28.8% share.
By main industrial groups, intermediate goods accounted for the largest share of total sales at 43.8%, followed by non-durable consumer goods at 23.7% and capital goods at 21.8%.
In the manufacture of motor vehicles, trailers and semi-trailers, the top five provinces accounted for 83.1% of total sales value. Kocaeli held the largest share at 34%, followed by Bursa at 29.8%, Sakarya at 11.8%, Aksaray at 3.9% and Izmir at 3.6%.
In contract manufacturing, clothing products accounted for 32.3% in manufacturing, followed by textile products at 17.6% and fabricated metal products at 9.3%.
Türkiye was home to 688 companies funded by Latin American and Caribbean capital as of the end of 2025, with their capital investment stock in the country reaching $3.4 billion, Trade Minister Ömer Bolat said.
Speaking at a meeting with ambassadors of Latin American countries at the Trade Ministry on Thursday, Bolat offered condolences on behalf of the Turkish nation and government over the earthquake in Venezuela, saying Türkiye would stand by the country in search and rescue and other relief efforts.
Bolat said relations between Türkiye and Latin America had developed on the basis of mutual respect and a shared vision, adding that the “Latin America and the Caribbean Opening Policy,” launched in 1998 and updated in 2006, had begun to bear fruit.
Pointing to the significant increase in Türkiye’s diplomatic presence in the region in recent years, Bolat said: “We increased the number of our diplomatic missions from six in 2002 to 20 today. We have trade counselor offices in most countries in the region. Likewise, we are very pleased that Latin American countries have 18 embassies in Türkiye.”
Bolat said Türkiye and Latin American countries had signed important trade and political agreements over the past two decades, while direct flights from Türkiye to the region had also begun during this period.
He also highlighted aid carried out in the region by the Turkish Cooperation and Coordination Agency (TIKA), saying Turkish institutions had rapidly delivered assistance to the region during natural disasters such as earthquakes and hurricanes.
Despite geopolitical risks and protectionist policies, Bolat said the Turkish economy had recorded positive growth for the past 23 quarters and ranked 16th in the world with an economy exceeding $1.1 trillion. He said Türkiye had introduced legal regulations to provide incentives to international investors.
Bolat noted that Türkiye had reduced the corporate tax rate for international investments from 25% to 12.5%.
“We have also launched the ‘One-Stop Office’ system to carry out the permit and licensing procedures investors need from a single center. Our national income per capita has exceeded $18,000. The downward trend in inflation and unemployment remaining in single digits for the past three years continue to make Türkiye an attractive center for investors,” he said.
Bolat said Türkiye’s combined goods and services exports reached $390 billion in 2025, adding that the target for 2026 was $410 billion. He also pointed to the global success of the Turkish contracting sector, saying Turkish firms had undertaken projects worth $562 billion in 138 countries.
Bolat said the coming period would see intense diplomatic activity, noting that Türkiye would host major international events this year, including the NATO Summit, the U.N. Climate Change Conference COP31 and the International Astronautical Congress.
He said Türkiye’s trade relations with Latin America and the Caribbean had gained momentum in recent years. The total trade volume with the region stood at just $920 million in 2000 but increased 18-fold over 25 years to reach $16.4 billion, he said.
Bolat said $5.7 billion of the total trade consisted of Türkiye’s exports to Latin America and the Caribbean, while $10.6 billion came from imports from the region.
“Trade with the region continued to increase in the first five months of this year, reaching $8.3 billion. While Türkiye’s exports to Latin America remained almost unchanged during this period, imports from the Latin American region increased by 19%. Thus, the foreign trade volume rose by 15.7%,” he said.
Bolat said Türkiye’s exports to Latin American countries mainly included gold, jewelry, iron and steel, automotive products, cement and petroleum oils, while imports from the region included live cattle, raw unprocessed gold, soybeans, coffee, cotton and hard coal.
Noting that Latin America and the Caribbean still did not account for a large share of Türkiye’s foreign trade, Bolat said the region’s share in Türkiye’s total exports in 2025 was 2.1%, while its share in total imports was around 3%.
“This picture shows that our supply from the region has strengthened, but it also indicates that we need to place greater importance on mutual trade relations and achieve a more balanced structure in foreign trade. In the coming period, we will raise these rates further,” he said.
Bolat said Türkiye was closely following regional integration initiatives such as MERCOSUR, or the Southern Common Market, and the Pacific Alliance, in addition to maintaining good bilateral ties with countries in the region.
“We are also carefully monitoring developments regarding the free trade agreement signed between the European Union and MERCOSUR. We believe Türkiye’s more than 30 years of Customs Union integration experience with the European Union in industrial products is also important for developing our economic relations with MERCOSUR,” he said.
Bolat said Türkiye had free trade agreements with Chile and Venezuela in the region, Joint Economic Commission mechanisms with 24 countries and Joint Economic and Trade Committee (JETCO) mechanisms with several countries.
He said the first JETCO meeting with Paraguay had also been held recently, adding that Türkiye had agreements on the reciprocal promotion and protection of investments with eight friendly countries in the region, as well as double taxation avoidance agreements with six countries.
Bolat said there were 13 business councils for the region within the Foreign Economic Relations Board (DEIK), adding that Türkiye aimed to further advance trade, investment and economic cooperation through new projects and that he believed the number of business councils would increase further.
Highlighting mutual investments, Bolat said: “As of the end of 2025, 688 companies with Latin American and Caribbean capital had been established in Türkiye, and their capital investment stock in Türkiye stood at $3.4 billion. Direct investment and capital stock from Türkiye to Latin American countries amounts to $1.3 billion. Turkish companies have investments in many sectors in Latin America, from port operations and energy investments to construction and tourism. Considering the potential between us, it is clear that mutual investments need to increase further.”
Bolat said the total value of projects undertaken by Turkish international contracting firms in Latin America and the Caribbean had reached $1.6 billion, with 45 projects completed or undertaken to date.
He also said Turkish TV series had attracted intense interest in the region, adding that Türkiye was the world’s third-fastest-growing country in TV series and film exports after the U.S. and the U.K.
Bolat said Turkish productions had become a global brand, reaching more than 1 billion viewers daily in over 150 countries.
“Turkish TV series attract great interest across Latin America and the Caribbean, particularly in Chile, Argentina, Colombia, Peru, Mexico and Brazil, as well as in North America, both on national television channels and digital streaming platforms,” he said.
“With the growing interest in Turkish series in recent years, there has also been a significant rise in demand among people in the region to learn Turkish. According to the latest services export data, Türkiye exports around $610 million worth of TV series annually, 22% of which goes to the Americas. Around 40% of Türkiye’s TV and film exports to the Americas reach service consumers in the Latin American market,” he added.
Bolat said Türkiye also recognized Latin America’s deep-rooted production experience in the sector, noting that Latin American TV series were also followed with great interest in Türkiye.
“By combining Latin America’s experience in TV and film production with Türkiye’s production strength, intensive cooperation can be developed in areas such as joint productions, adaptations, scriptwriting and format exchange,” he said.
Climate action stands out not only as an environmental priority but also as an essential path for protecting growth, stability and prosperity, according to Treasury and Finance Minister Mehmet Şimşek.
“Climate action is not just about protecting the environment. It is about protecting growth, stability and prosperity,” the minister said at the Net Zero Delivery Summit, held as part of London Climate Action Week.
Şimşek said climate discussions over the past decade had focused mainly on targets and commitments, but the priority must now shift to implementation.
“Most countries already have ambitious targets. The real question is whether we can implement these plans at the speed and scale required,” he said.
He warned that the cost of inaction would be far higher than the cost of preventing climate-related disasters.
“If we fail to tackle climate change, the cost will be extremely high. Most studies show that the cost of inaction is many times greater than the cost of preventing a climate catastrophe,” he said.
Şimşek said developing countries, excluding China, are expected to need around $2.5 trillion annually by 2030 to meet their climate goals, while current climate finance flows stand at only about $200 billion a year.
“We are far from the scale required,” he said, adding that the issue is not a lack of capital but the need to mobilize it at scale and direct it toward investable climate projects.
“Climate risk is no longer a risk of the future. It is already an economic risk today. Moreover, this problem is not limited to individual countries; it is a global problem,” he said.
He noted that only about one-quarter of climate-related losses worldwide are insured, while the remaining burden falls on households, companies and governments.
The minister also said the global financial system needs a simpler, faster and more effective climate finance architecture, with lower capital costs, improved access to finance and stronger cooperation among public institutions, multilateral development banks and investors.
He recalled that countries agreed at COP29 in Baku on a new climate finance target of $300 billion annually by 2035 and set out a road map to mobilize $1.3 trillion.
“Now the real question is how we turn these commitments into concrete results. This is precisely where Türkiye hopes to contribute as this year’s COP31 president,” Şimşek said.
He said Türkiye aims to support implementation through its Climate Implementation Bridge initiative, which seeks to help countries turn climate priorities into investable project pipelines and connect them with financing.
On Türkiye’s COP31 priorities, Şimşek said electrification will be one of the central focus areas.
“Recent energy shocks have reminded us that energy security, affordability and sustainability can no longer be considered separately,” he said.
He said Türkiye has launched a global discussion on raising electricity’s share in final energy consumption from around 20% today to 35% by 2035.
Şimşek said Türkiye’s COP31 agenda also includes waste management, cities, oceans and youth engagement, while the COP31 Business Forum was launched this week with the Union of Chambers and Commodity Exchanges of Türkiye (TOBB), serving as the private sector representative.
The forum will convene again during New York Climate Week and later at COP31 in Antalya, while Istanbul will host Climate Finance Week in September, he said.
“What the world lacks is not commitments, but implementation. These commitments can only be realized through partnerships,” Şimşek noted.
The International Monetary Fund (IMF) said Wednesday it’s prepared to make “immediate disbursement” of more than $800 million to the Ivory Coast as part of several aid programs.
The fund’s executive board reviewed and approved three programs, allowing Abidjan to borrow approximately $832.8 million.
The lender in a statement commended Ivory Coast authorities for “sustained reform efforts” that have “helped restore macroeconomic stability.”
For nearly 15 years, the country has posted strong growth rates – among the strongest in the region – and has regained stability after a decade of strife in the early 2000s.
The Washington-based banking organization expects growth to slow to %6 in 2026, down from %6.5 in 2025, reflecting economic repercussions of the Middle East war and heightened global uncertainty.
“Inflation, which declined to near zero in 2025, has begun to rebound and is projected to average %3.3 in 2026, driven by higher food and energy prices,” the IMF said in a statement.
EU states gave their final approval Thursday to a year-old tariff deal with the United States, allowing it to enter into force ahead of a July 4 deadline set by U.S. President Donald Trump.
Struck between Trump and EU chief Ursula von der Leyen in July 2025, the deal sets levies of %15 on most of EU exports to the U.S., and zero tariffs for U.S. industrial goods coming into the 27-nation bloc.
But the EU had yet to fulfil its side of the accord – after Trump’s threats to Greenland and a U.S. Supreme Court decision striking down many of his tariffs fuelled months of delay.
The sign-off by member states – who had already agreed the deal in substance – clears the final legislative hurdle on the EU side, following parliament’s approval earlier this month.
The deal’s approval “confirms the EU’s commitment to a stable, predictable and mutually beneficial transatlantic trade relationship, while preserving the necessary guardrails to protect European economic interests,” an EU statement said.
Lawmakers added a series of safeguards, including giving the European Commission power to suspend the pact if the U.S. side fails to meet its commitments or acts to disrupt trade and investment.
Parliament also introduced an expiration date of end-2029, unless the agreement is renewed by then.
“Openness must go hand in hand with safeguarding our interests,” said Michael Damianos, the commerce minister for the Greek Cypriot administration which holds the EU’s rotating presidency.
“These measures achieve both, supporting stable and predictable trade flows with the U.S. while ensuring the EU can respond swiftly and proportionately when the deal is not respected or its interests are at stake,” he said.
The two texts enacting the EU side of the accord – removing duties on U.S. industrial goods and introducing preferential access for certain seafood and farm products – will formally take effect a day after publication in the EU’s official journal.
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Speaker of the Grand National Assembly of Turkey Kurtulmuş: Terrorism will be removed from Türkiye’s agenda
BREAKING NEWS… Harsh reaction from Alevis to Garip Dede provocation! Great anger towards Özgür Özel and his supporters: You turned it into a rally area!
Son dakika | Başkan Erdoğan’dan 33. İstişare ve Değerlendirme Toplantısı’nda tarihi mesaj: AK Parti bir Türkiye kitabıdır!
Speaker of the Grand National Assembly of Turkey Kurtulmuş: Terrorism will be removed from Türkiye’s agenda
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