On Tuesday, Kasikorn Securities reported that the United States may plan to implement a regional tariffs scheme instead of nation specific tariffs as the trade negotiation progressed at a snail’s pace.
President Donald Trump will issue letters regarding the tariff rate to each country within 2-3 weeks, currently focusing on 18 most important trade partners such as India, Japan, and South Korea. Currently, the tariffs have a 10% base with increasing rates depending on each country’s trade balance with the U.S.
If the negotiations stalled, the U.S. may reimplement the April 2 tariff rates, after a 90 days postpone which would end in July. Meanwhile, South Korea is preparing to negotiate with the U.S. on May 20.
The securities firms express downside sentiment toward exporting stocks such as AAI, ITC, DELTA, and HANA.
