00:00Now Japan and South Korea, the two top countries, preparing them for 25% new tariffs on goods in the US from the 1st of August after a new announcement from the US President Donald Trump.
00:10The move hitting the markets, though markets in Asia, taking the news a little more in their stride.
00:15And all 14 countries are targeted, including as well Serbia, Thailand and Tunisia, with warnings that other countries may still be targeted before the end of the month.
00:23We're going to cross to Hong Kong, talk to our correspondent Kami Nelleck, who joins us from there.
00:27Kami, how are these new tariffs then being seen across Asia?
00:33So we've got two things going on here, Stuart.
00:36First off, we've got the market reaction, which on the whole is pretty positive, and the political reaction, which is a little bit more downbeat.
00:44So markets first off, for example, here in Hong Kong, Hanseng closed at over a percentage point.
00:50And then we've also got markets where there's been either no news or a little bit of bad news.
00:57So we've seen Thailand's stock exchange dip.
01:01We also saw India's stock exchange dip.
01:04That's because India didn't get a letter.
01:05And one thing that investors could be rattled by is lack of certainty.
01:10It has picked up since.
01:13We've also got then the Kospi, which had the strongest gains of the day, the biggest winner.
01:19That is at almost 2 percent, 1.8.
01:25But South Korea is getting tariffs of 25 percent as per that letter from the United States.
01:33South Korea's president is in talks with officials to try and broker a better deal than that.
01:39South Korean officials have also said that U.S. Secretary of State Marco Rubio has agreed to have a summit to try and move those negotiations forward and that it is possible but difficult within the three-week time frame to try and get something better.
01:54So they do have one of the best deals.
01:57So does Japan, also 25 percent.
02:00But Japan's prime minister also called the deal that he currently has as regrettable.
02:07So while the markets seem to be faring a little bit better than the political sentiment, definitely politicians here are worried, especially Japan and South Korea,
02:18who are some of the strongest allies that the United States has in the region and could have expected to see something a little bit better than what they've got.
02:26Of course, the big one, really, if you like, Camille, is still China.
02:31Tariffs are remaining high on China, not mentioned in this tranche at the moment, even though Trump last month held that excellent relationship.
02:38And China is now warning, isn't it, the U.S. not to impose any new tariffs.
02:41Yes. So in Chinese state media, People's Daily, we've got an article published on Tuesday that said reiterating that Beijing would take action if these flurry of new deals that are coming out undermine China's interest.
03:00Now, what China means by that is the type of deal that we've seen with Vietnam.
03:05So Washington wants to prevent trans shipping. That's when, for example, China exports something to Vietnam.
03:13Vietnam uses that to create something in Vietnam and then exports it under the label made in Vietnam.
03:20Washington has said those types of products will be whacked with a 40 percent tariff as opposed to a 20 percent tariff.
03:27Beijing's obviously upset about that because that is actively undermining its own economic interests in other countries.
03:36What they mean by taking action. I mean, we've seen what that means.
03:40So Beijing hasn't come out and said it, but rare earth minerals clearly have been central throughout the trade war.
03:48And Beijing has shown throughout the discussions with the United States that it can and will deploy its trump card, so to speak, with devastating effects.
03:58Because it's not just the United States that's impacted when Beijing turns off the taps.
04:03It's also Europe. It's countries around the world.
04:06There were automakers in Europe that temporarily had to shut down their facilities.
04:10Last time Beijing tightened its grip on its rare earth exports and Beijing has been hedging its bets.
04:17It's been very careful to say that it will continue its exports according to its own laws.
04:23So it actually hasn't really promised very much.
