Asia shrugs off Trump’s new tariff threat, as governments hope they can get a deal before August 1

Finance·Tariffs and tradeAsia shrugs off Trump’s new tariff threat, as governments hope they can get a deal before August 1BY Lionel LimBY Lionel LimAsia ReporterLionel LimAsia ReporterLionel Lim is a Singapore-based reporter covering the Asia-Pacific region

Andrew Caballero-Reynolds—AFP via Getty ImagesAsian largely shrugged off Trump’s announcement of tariff rates on some of its trading partners, as the U

President also seemingly pushed the start date for new taxes to August 1

Those are roughly the same level that Trump originally threatened back in April

Trading partners have until August 1 to negotiate new trade deals, instead of a previously imposed July 9 deadline

South Korea’s KOSPI rose by 1

In his letters to Japan and South Korea, Trump noted that goods deemed to be transshipped to “evade a higher Tariff will be subject to that higher Tariff”, though did not give specifics

A previously-announced deal with Vietnam imposed a 40% tariff on goods transshipped through the Southeast Asian country, but the Trump administration has yet to how it understands “transshipment” as a concept

President also threatened to hike tariffs further if either Japan or South Korea retaliates with their own measures

Both Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae Myung expressed optimism on Tuesday that they could find a mutually-agreeable arrangement before August 1

India’s NIFTY 50 is flat

A total of 14 letters were sent out and more than half were to economies in Asia

The 90-day tariff pause for trade negotiations was originally meant to expire on Wednesday

That deadline appears to have been ext to August 1, allowing more time for negotiations

And that could be much appreciated breathing room for Southeast Asian economies, which rely on the U

As a major export market

Indonesia, Thailand, Malaysia, and Cambodia have all publicly offered to buy more U

Ducts, energy or agricultural goods

Malaysia, already in negotiations with Washington, said Tuesday that it will continue negotiations with the U

The country is now getting a 25% tariff, one percentage point higher than what was posed on “Liberation Day. ” Malaysia’s Ministry of Investment, Trade, and Industry said in a statement that the country is “committed to continuing engagement with the U

Towards a balanced, mutually beneficial, and comprehensive trade agreement”

In Thailand, finance minister Pichai Chunhavajira expressed confidence that the country could negotiate a lower tariff rate ing the 36% announced by Trump

Ducts, and eliminate taxes on many items

Has yet to consider Thailand’s posal, and that continued talks will lead to a positive outcome by August 1

Indonesia’s coordinating minister for economic affairs Airlangga Hartarto, is expected to arrive in Washington on July 8 to meet U

Last week, Indonesia said it was committing $34 billion in trade and investment agreements with the U

The Southeast Asian country, which got one of the highest Liberation Day tariff rates, has previously agreed to cut tariffs on U.