South Korea's talks to finalize a US trade deal have hit a snag over details of a $350 billion investment fund that both sides agreed to as part of the broader deal. A top Seoul official has warned that even the shipbuilding partnership may be at risk if they fail to reach an agreement.

Kim Yong-beom, director of national policy for South Korea's presidential official, said Seoul cannot accept the same terms as Japan's $550 billion investment pledge, which was finalized last week through an executive order from President Trump. Yong-beom cited differences in size of the two economies and also repercussions on the foreign exchange market.

“Without an agreement, it will be difficult for the MASGA project to even get off the ground,” Kim said, referring to Make American Shipbuilding Great Again.

Meanwhile, the US Treasury Department would have to give rebates if the Supreme Court decides that President Trump's "reciprocal" tariffs went beyond his authority, Secretary Scott Bessent said Sunday.

"We would have to give a refund on about half the tariffs, which would be terrible for the Treasury," Bessent said.

Amid legal questions hanging over tariffs, Trump has asked the Supreme Court for an immediate hearing in hopes of overturning an appeals court ruling that deemed most of his tariffs illegal. A federal appeals court ruled that most of Trump's global tariffs were illegal, reaffirming an earlier ruling by the Court of International Trade and saying he exceeded his authority in using emergency powers to impose them.

His administration called for the high court to put the case on a highly expedited schedule, with arguments starting in early November, according to filings.

Trump suggested that the US may have to "unwind" existing trade deals, including with the European Union, Japan, and South Korea, if the Supreme Court doesn't uphold the tariffs.

In any case, it means the "reciprocal" tariffs Trump unveiled on dozens of US trade partners (which you can see in the graphic above) now face legal limbo.

Elsewhere, postal traffic to the US dropped more than 80% after the Trump administration ended the de minimis tariff exemption for low-cost imports, the United Nations postal agency said Saturday. And on Friday Trump signed an executive order exempting gold, tungsten, and uranium from global tariffs.

Read more: What Trump's tariffs mean for the economy and your wallet

Here are the latest updates as the policy reverberates around the world.

This week is the Munich car show, Europe's largest car event, when automakers come together and debut new releases. But with tariffs hanging over the sector the buzz and hype of years before may be gone.

Reuters reports:

Prices and profits in key market China are in decline, demand is tepid in Europe and U.S. tariffs have created an uncertain outlook, putting the focus on cost-cutting as the global market is reshaped.

\\"The party we have been celebrating in the automotive industry for decades is over in its current form,\\" said Oliver Blume, CEO of both Volkswagen, Europe's biggest carmaker, and its luxury division Porsche AG.

\\"Now it is about reorientation.\\"

The sector faces a reckoning, sharpened by pressure to shift towards EVs with tough 2035 targets in Europe that many feel they cannot meet, even as Chinese EV rivals steal a march on local brands with lower-cost models.

That's put Volkswagen (VWAGY), Mercedes-Benz (MBG.DE), BMW (BMW.DE), Porsche and Renault on the defensive. At the IAA Mobility car show in Munich, they rolled out models from affordable entry-level EVs to luxury SUVs.

Read more here.

Japan's top negotiator Ryosei Akazawa said on Tuesday that US tariffs on Japanese goods including cars and auto parts will be lowered by September 16.

Reuters reports:

Citing a U.S. Federal Register document dated September 9 that formalised President Donald Trump's executive order on the U.S.-Japan trade deal, Akazawa said in a press conference the revised tariff rates on Japanese goods will take effect within seven days from its publication.

Washington struck a trade deal with Tokyo in July, agreeing to reduce tariffs to 15% on Japanese goods, including autos, in exchange for a $550 billion package of U.S.-bound investments and loans.

Trump's signing of the order last week resolved some uncertainty over when the lower tariffs would be implemented.

Read more here.

Vietnam's exports to the United States fell 2% from July to August to $13.94 billion, according to Vietnamese customs data on Tuesday, as a tariff of 20% on shipments to the US took effect.

Reuters reports:

Imports from China also fell 2% in August from July, the Customs Department said. The Trump administration has repeatedly accused Vietnam of being used as a transshipment hub for Chinese goods directed to the United States.

For the first eight months of 2025, Vietnam's shipments to the United States rose 26.4% from a year earlier to $99.05 billion, the report showed, providing a breakdown of trade with individual countries after aggregate figures were released on the weekend.

The United States, Vietnam's biggest market, imposed the 20% tariff from August 7, while transshipments from third countries through Vietnam face a levy of 40%.

Read more here.

Reuters reports:

US tariffs are increasingly pressuring the already challenged petrochemicals sector, with China, the top producer, shifting its exports to Asia, industry executives said at a conference in Singapore on Tuesday.

The disruption could lead to a 15% drop in the global petrochemical trade, a TotalEnergies executive told the APPEC conference.

\\"If tariffs remain in place, petrochemicals trading will see another 15% drop on top of the 34% drop it has seen in the last five years,\\" TotalEnergies' head of petrochemical trading, Ganesh Gopalakrishnan, told Reuters on the sidelines of the conference.

Read more here.

South Korea's negotiations with the US to finalize a trade deal have stalled due to concerns around details relating to a $350 billion investment fund that both sides agreed to as part of a broader trade deal.

A Seoul official has warned that even the shipbuilding partnership is at risk of they fail to reach an agreement.

Bloomberg News:

Speaking at a forum on Tuesday, Kim Yong-beom, director of national policy at South Korea’s presidential office, said Seoul has been emphasizing to US officials that it cannot accept the same terms as Japan’s $550 billion investment pledge finalized last week, citing the disparity in the size of the two economies and the potential repercussions on the foreign exchange market.

“Without an agreement, it will be difficult for the MASGA project to even get off the ground,” Kim said, referring to Make American Shipbuilding Great Again, a term Seoul coined for reviving the US shipbuilding sector. Kim said the US had presented South Korea with a draft similar to the one Japan accepted, but Seoul has maintained it cannot agree to those terms.

“The circumstances facing South Korea and Japan are fundamentally different,” Kim said, pointing to Japan’s currency swap arrangements and the yen’s role as a reserve currency.

Read more here.

Leaders of countries that make up the BRICS alliance have continued to decry President Trump's tariffs and promised to fight against \\"unjustified and illegal trade practices.\\"

Bloomberg reports:

Brazil’s Luiz Inacio Lula da Silva decried the use of tariffs as a tool of “blackmail” while China’s Xi Jinping said trade wars were disrupting the global economy during a BRICS summit that took place against the backdrop of Donald Trump’s targeting of the bloc’s members.

Neither Lula nor Xi specifically mentioned Trump or the US during Monday remarks at a virtual gathering of BRICS countries, the group of emerging market nations formed by Brazil, Russia, India, China and later South Africa that has since expanded to include other countries.

But the Brazilian leader convened the meeting to discuss US trade practices that have included the imposition of 50% tariffs on many of his nation’s goods and similar levies against India, and both he and Xi urged BRICS members to stand united in defense of a multilateral system they said is under threat.

“Tariff blackmail is being normalized as an instrument to seize markets and interfere in domestic affairs,” Lula said during the summit, according to written remarks released by Brazil’s government. “Our countries have become victims of unjustified and illegal trade practices.”

Read more from Bloomberg here.

Early Monday morning, a series of tweaks to Donald Trump's tariff regime went into effect following an executive order released late Friday. Those adjustments mandated changes to how an array of goods are impacted by the current \\"reciprocal\\" tariff setup.

Most notably, the order excluded \\"bullion-related articles\\" from tariffs after Trump promised action last month, as fears that gold bars would be subject to duties briefly unleashed turmoil in gold markets. [...]

Overall, it was a notable move on Trump's tariff plans. That's because this precise \\"reciprocal\\" tariff authority the president exercised over the weekend has been ruled illegal by two courts — with the Supreme Court likely to make a final decision in the weeks or months ahead.

\\"This EO is significant,\\" wrote Ted Murphy, an international trade lawyer at Sidley Austin. He said the overall message of the order is one of a move away from international rules and that \\"basically, the President will set (and modify) tariffs on his own initiative.\\"

\\"If tariffs can change with 3 days' notice (over a weekend), can a company really plan ahead?\\" he added. \\"Probably not.\\"

Read more here.

China's top legislative body said on Monday it has has started reviewing the first update in over 20 years to its foreign trade law, aiming to provide legal support for trade conflict countermeasures.

The revision would let China impose trade bans or restrictions on people or groups seen as a threat to China's security or sovereignty, according to a report from the Xinhua news agency.

Reuters reports:

The draft also outlines the establishment of a \\"trade adjustment assistance\\" system and measures to stabilise supply chains, the report said.

The revision, the first since April 2004, was expected this year, but its deliberation had not appeared in the agenda for a scheduled meeting of the Standing Committee of the National People's Congress this week.

China's commerce ministry had previously mentioned that \\"other necessary measures\\" beyond trade bans and restrictions could be taken, without providing details.

Such open-ended language allows for a vast range of countermeasures deployed in the past, including export controls and investigations into foreign companies.

It was unclear if the revision would be passed this week. Bills, revisions and amendments typically require three readings by lawmakers.

The rise of global trade barriers since Donald Trump's return to the U.S. presidency has exacerbated challenges for China's export-driven economy, with the imposition of sweeping duties on imports of Chinese products setting off months of tit-for-tat tariff escalations.

Read more here.

The US is proposing annual approvals for chipmaking exports to Samsung (005930.KS) and SK Hynix's (000660.KS) China factories, aiming to avoid global supply disruptions after President Trump ended Biden-era waivers.

Bloomberg News reports:

Officials in the US Commerce Department last week presented to Korean counterparts a “site license” idea to supplant indefinite authorizations the chipmakers secured under the previous administration, according to people familiar with the matter. Those so-called validated end user, or VEU, designations are set to expire at the end of this year.

The VEU system granted Samsung and SK Hynix perpetual approval to ship estimated quantities of supplies, based on up-front security and monitoring commitments, to factories in China — where the US has broadly curbed shipments of semiconductors and the tools needed to make them. The Trump team’s proposal instead requires South Korea’s two largest companies to seek Washington’s approval for a year’s worth of restricted gear, parts and materials at a time, spelled out in exact quantities, the people said.

Read more here.

An immigration raid at a Georgia EV battery plant run by two South Korean firms has unsettled Seoul, coming two weeks after President Trump met President Lee. Its impact on the trade deal remains unclear.

Bloomberg News:

Korean officials worked over the weekend to secure the release of 300 of its citizens detained at a construction site for a Hyundai Motor Co.-LG Energy Solution Ltd. joint venture, Lee’s chief of staff Kang Hoon-sik said during a senior-level meeting between the ruling Democratic Party and the government.

The Korean workers may be able to board a chartered flight around Wednesday to return home, Yonhap News Agency reported, citing comments from Consul General Cho Ki-joong at a Georgia detention center where the workers are being held.

It remains unclear what visas the workers held or whether those allowed them to be on the site.

The crackdown comes at a fraught moment, shortly after Lee and Trump held a summit to showcase their alliance and solidify a new trade pact. The deal included a $350 billion fund to support South Korean firms expanding in the US, with $150 billion earmarked for shipbuilding. Private companies pledged an additional $150 billion in direct US investment.

The raid has put Lee’s government under pressure at home and threatens to become a major diplomatic flashpoint with one of Washington’s closest allies. It was front-page news for most of South Korea’s daily newspapers on Saturday, with footage of workers shackled at the wrists, waist and ankles and marched onto buses causing rage.

Read more here.

Reuters reports:

U.S. tariffs have cost Volkswagen (VOW3.DE, VLKAF), Europe's largest carmaker, billions of euros so far, its chief executive said on Monday, adding that its key brand Porsche was being squeezed in a \\"sandwich\\" of duties and a weak Chinese market.

Speaking to Reuters during the IAA Munich car show, Oliver Blume said \\"it's several billion euros on our balance sheet that this situation costs this year\\".

The comments lay bare the full impact tariffs are having across the sprawling Volkswagen group, which includes the Audi, Porsche, Cupra and Skoda brands, among others.

Read more here.

President Trump said he wants to bring in experts to train US workers after an immigration raid at a South Korean-owned EV battery plant in Georgia.

Bloomberg News reports:

“You don’t have people in this country who know about batteries,” Trump told reporters Sunday as he returned to Washington from watching the US Open tennis final. “Maybe we should help them along and let some people come in and train our people.”

South Korean officials are trying to secure the release of 300 of its citizens detained at a construction site for a Hyundai Motor Co.-LG Energy Solution Ltd. joint venture.

The Korean workers may be able to board a chartered flight around Wednesday to return home, Yonhap News Agency reported, citing comments from Consul General Cho Ki-joong at a Georgia detention center where the workers are being held.

“We do have to work something out where we bring in experts so our people can be trained, so they can do it themselves,” Trump said.

Read more here.

Reuters reports:

China's export growth slowed to a six-month low in August as a brief boost from a tariff truce with the U.S. faded, but demand elsewhere provided officials some relief as they try to underpin an economy facing low domestic consumption and external risks.

Authorities are counting on manufacturers to diversify into other markets in the wake of U.S. President Donald Trump's erratic trade policy, enabling them to hit Beijing's annual growth target of \\"around 5%\\" without rushing to offer additional near-term fiscal support.

Outbound shipments from China rose 4.4% year-on-year in August, customs data showed on Monday, missing a forecast 5% increase in a Reuters poll and marking the slowest growth in six months. They compared with July's better-than-expected 7.2% increase.

Read more here.

The Associated Press reports:

Postal traffic into the United States plunged by more than 80% after the Trump administration ended a tariff exemption for low-cost imports, the United Nations postal agency said Saturday.

The Universal Postal Union says it has started rolling out new measures that can help postal operators around the world calculate and collect duties, or taxes, after the U.S. eliminated the so-called \\"de minimis exemption” for lower-value parcels.

Eighty-eight postal operators have told the UPU that they have suspended some or all postal services to the United States until a solution is implemented with regard to U.S.-bound parcels valued at $800 or less, which had been the cutoff for imported goods to escape customs charges.

“The global network saw postal traffic to the U.S. come to a near-halt after the implementation of the new rules on Aug. 29, 2025, which for the first time placed the burden of customs duty collection and remittance on transportation carriers or U.S. Customs and Border Protection agency-approved qualified parties,” the UPU said in a statement.

Read more here.

Bloomberg reports:

President Donald Trump moved Friday to exempt graphite, tungsten, uranium, gold bullion and other metals from his country-based tariffs, while subjecting silicone products to the levies.

The changes are set to take effect on Monday under an executive order issued Friday.

Trump’s directive could also speed implementation of bespoke trade deals between the US and other countries, making it easier for Washington to lift tariffs on aircraft parts, generic pharmaceuticals and certain products that can’t be grown, mined or naturally produced domestically — such as specialty spices and coffee, as well as obscure metals.

The measure formalizes a plan to exempt gold bars from tariffs, after a US Customs and Border Protection ruling weeks ago stunned traders and caused confusion by indicating bullion would be subject to import taxes.

Read more here.

Bloomberg reports:

US President Donald Trump threatened a probe that could prompt fresh tariffs in response to the European Union fining Alphabet Inc.’s Google over findings the company abused its dominance by giving its own ad exchanges a competitive advantage.

The president made his warning in a social media post Friday after the EU announced it was fining Google almost €3 billion ($3.5 billion) and ordering the search giant to stop favoring its own advertising technology services.

“This is on top of the many other Fines and Taxes that have been issued against Google and other American Tech Companies, in particular,” Trump said. “Very unfair, and the American Taxpayer will not stand for it! As I have said before, my Administration will NOT allow these discriminatory actions to stand.”

Trump has previously used so-called 301 probes to target imports from Brazil over its prosecution of former President Jair Bolsonaro.

Read more here.

One thing President Trump promised to do was to slash red tape for US businesses, butit seems that pledge may already have been broken due to the US president's sweeping tariffs, which have created more paperwork for American firms.

Bloomberg News reports:

One business owner who has experienced it all is David Zampierin, the founder of Idaho-based Zamp Racing, which makes helmets, suits and other kit for auto-racing drivers.

He spent July glued to a screen tracking a shipment from China, then realized it wouldn’t arrive before Trump’s trade truce with Beijing was due to expire. His solution: Park the stuff in a bonded warehouse in South Korea, then wait and see. When Trump extended the truce into November, Zampierin immediately ordered his goods to be shipped.

“Even though the pandemic was crazy, there was kind of a certainty there. Now it’s more about the confusion,” he said. “I’ve been doing this for 40 years. And it’s never been this complicated.”

Read more here.

Reuters reports:

The European Union would welcome U.S. President Donald Trump's support for its plans to stop buying Russian oil, purchases of which are helping to finance Moscow's war in Ukraine, EU Energy Commissioner Dan Jorgensen told Reuters on Friday.

The European Union is negotiating legal proposals to phase out EU imports of Russian oil and gas by January 1, 2028, as it seeks to sever decades-old energy ties with Moscow.

U.S. President Donald Trump told European leaders in a call on Thursday that Europe must stop buying Russian oil, a White House official said, as diplomatic efforts to end the fighting drag on.

Jorgensen, who is responsible for the EU's energy policies, told Reuters he had not come under pressure from the U.S. administration to halt Russian oil purchases faster than the 2028 deadline, but would welcome U.S. backing for the EU plan.

Read more here.

US Commerce Secretary Howard Lutnick said in an interview Friday that President Trump's trade deals will stay in place despite the ongoing legal battles around tariffs currently taking place.

Reuters reports:

\\"These big deals are going to stay. We have lots of other authorities that the president can use,\\" Lutnick said. \\"The 232s — so everything we just did with Japan — that holds, right? That's durable, that stays. Europe - that stays. These are autos, pharmaceuticals, semiconductors, those all stay.\\"

President Trump unleashed another scathing attack on China Friday and posted that India and Russia appear to be lost to \\"deepest, darkest, China.\\"

This latest comment from Trump follows the Shanghai Cooperation Organisation (SCO) meeting in Beijing this week where their leaders stood alongside Chinese President Xi Jinping.

Trump posted: \\"Looks like we’ve lost India and Russia to deepest, darkest, China. May they have a long and prosperous future together! President Donald J. Trump.\\"