Trade Tensions on the Rise: Global Impact of U.S. Tariffs

Amid escalating trade tensions, Japan and South Korea seek to negotiate with the U.S. to mitigate steep tariffs set to take effect from August 1. Economists fear the tariffs could stunt growth and increase prices globally, while the EU explores countermeasures and potential trade deal concessions.

Amid mounting international trade tensions, Japan and South Korea have announced plans to negotiate with the U.S. in an effort to soften the blow of substantial tariffs expected to take effect at the beginning of August. This move is part of a broader strategy to counter President Donald Trump's ongoing tariff war.

Japan, particularly concerned about its automotive industry, is seeking concessions and has not ruled out additional negotiations. Meanwhile, the European Union is carefully planning its next steps, warning the U.S. of potential retaliatory measures if a fair trade agreement is not reached before the looming deadline.

As global markets brace for the impact, economists caution that prolonged trade disputes may hinder growth and result in higher prices. The tariffs have already sparked concern among key industries like Cambodia's garments sector and Bangladesh's garment manufacturers, both of which heavily rely on U.S. exports.

(With inputs from agencies.)