World braces for tariffs

US PRESIDENT Donald Trump imposed new tariffs to punish or favour major trading partners this week, as governments raced to strike deals with Washington less than 24 hours before an August 1 deadline.

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South Korea squeezed in at the last moment, securing agreement on a 15% tariff for exports to the US - significantly below the 25% that Trump had earlier threatened to introduce.

But Trump also announced crippling 50% tariffs on Brazil and a 25% levy on Indian exports, while warning Canada it would face trade repercussions for planning to recognize a Palestinian state.

The 15% rate on Seoul - Washington’s key security ally - was equivalent to levies determined from US trade deals with Japan and the EU.

An additional unspecified “large sum of money” will be invested by South Korea in the US, the American leader said.

Seoul’s presidential office said tariffs on automobiles - one of Seoul’s key exports — would also stay at 15%.

Trump hit Brazil with high tariffs as well as sanctions against the judge overseeing a trial of his far-right ally Jair Bolsonaro, who is accused of attempting a coup in Latin America’s biggest economy.