SINGAPORE (Reuters). — The yen fell broadly on Tuesday while the dollar held steady as US President Donald Trump unveiled 25 percent tariffs on goods from Japan and South Korea in the latest development of his chaotic trade war.
Trump on Monday began telling trade partners – from powerhouse suppliers like Japan and South Korea to minor players – that sharply higher US tariffs will start August 1. He later said that he was open to extensions if countries made proposals.
The announcement rattled investor sentiment, sending the Japanese yen and South Korean won down roughly 1 percent overnight.
Both currencies remained under pressure early on Tuesday, with the yen falling to a two-week low of 146.44 per dollar. The won rose 0.4 percent to 1370.20 per dollar.
Investors entered the week with much confusion over Trump’s tariff plans ahead of an initial July 9 deadline. While the new August 1 date offers a brief reprieve, the outlook remains uncertain and global economic concerns persist.
“There is still a lot of uncertainty as to where tariff rates will eventually settle and which countries will get what rates, so uncertainty about the global economy is still high and that will keep investors on edge for the time being,” said Carol Kong, a currency strategist at Commonwealth Bank of Australia.
“This is just the start and we’ll get more headlines out for sure over the coming days.”
Japanese Prime Minister Shigeru Ishiba said on Tuesday that Japan would continue negotiations with the United States to seek a trade deal that benefits both countries.
South Korea has said it plans to intensify trade talks with the US and views Trump’s plan for a 25 percent tariff from August 1 as effectively extending a grace period on implementing reciprocal tariffs.
