Updated: Trump Imposes 25% Tariffs on Japan, South Korea

Yesterday at 11:39 pm

3827 posts

Updated: Trump Imposes 25% Tariffs on Japan, South Korea \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ President Trump imposed sweeping new tariffs, including a 25% rate on imports from Japan and South Korea. Other nations face steep duties, sparking global concerns over trade instability and market disruptions. The move, announced via Truth Social, sets up complex negotiations ahead of the August 1 deadline.

Quick Looks

President Trump sets 25% tariffs on Japan and South Korea
Truth Social posts used to notify world leaders directly
Higher rates for Myanmar, Laos, Cambodia, and others
Trade talks failed to yield sufficient agreements
White House says tariffs fund tax cuts signed July 4
Legal challenges mount over Trump’s emergency tariff powers
Financial markets show volatility amid tariff uncertainty
Trump hints at flexibility but warns against retaliation
U.S. aims to pressure China through indirect partners
Only two of 90 promised trade frameworks have emerged

Deep Look

President Donald J. Trump on Monday formally announced a sweeping round of new tariffs targeting imports from Japan, South Korea, and over a dozen other countries. The move, which escalates global trade tensions, was communicated through a series of personalized letters shared via his Truth Social platform — an unconventional channel for presidential diplomacy that underscores Trump’s hands-on, populist approach to foreign policy.

Under the new directive, Japanese and South Korean goods will face a 25% import tax starting August 1, while nations such as Myanmar, Laos, Cambodia, Thailand, Bangladesh, Serbia, Indonesia, and South Africa will face duties ranging from 30% to 40%. Trump described these rates as “only” the baseline and warned of future increases if countries respond with retaliatory tariffs.

“If for any reason you decide to raise your Tariffs, then, whatever the number you choose… will be added onto the 25% that we charge,” Trump wrote bluntly to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae Myung.

The letters — standardized in tone and even containing a now-corrected gender misidentification of Bosnia’s female leader Željka Cvijanović — are not binding agreements but reflect Trump’s latest strategic gambit to reassert American manufacturing, address longstanding trade deficits, and fund the tax cuts he signed into law on July 4.

Markets React and Global Partners Scramble

The announcement rattled financial markets. The S&P 500 dropped 0.8%, while the yield on 10-year U.S. Treasury notes climbed to 4.39%, signaling heightened risk and potential cost increases for loans and mortgages.

South Korea’s Trade Ministry immediately responded by accelerating negotiations in hopes of reaching a new agreement before the tariffs take effect. South Africa, which faces a 30% tariff, issued a diplomatic statement calling the decision “mischaracterized,” while vowing to continue talks for a “mutually beneficial” trade future.

White House Press Secretary Karoline Leavitt defended Trump’s actions, stating that he is creating “tailor-made trade plans” for each country, designed to prioritize American interests and reshape global economic dependencies.

Tariffs Aimed at Rebuilding Domestic Industry, Isolating China

Trump has cast the tariffs as a necessary sacrifice to restore U.S. industry and redirect supply chains away from China. In particular, he seeks to pressure U.S. allies like Japan and South Korea — both major players in semiconductors, autos, energy, and shipbuilding — to align more closely with Washington’s interests in Asia.

Though the U.S. ran a $69.4 billion trade deficit with Japan and $66 billion with South Korea in 2024, critics argue these partners are vital to counterbalancing China’s influence in the region.

Trump’s strategy also includes special provisions for nations aligned with BRICS, the economic bloc including Russia, China, and India. These countries may face an additional 10% tariff as part of what Trump refers to as a counter to “hostile trading frameworks.”

August 1 Deadline and Negotiation Window

The 90-day negotiation period that followed Trump’s initial tariff proposal ends Wednesday, but Trump signed an executive order delaying the full implementation until August 1, allowing for what officials call a “three-week overtime” period.

Josh Lipsky, international economics chair at the Atlantic Council, said the short window is unlikely to allow for substantial deals. “I take it as a signal that he is serious about most of these tariffs and it’s not all a negotiating posture,” Lipsky said.

So far, only two of the 90 trade deals Trump promised have materialized. One agreement with Vietnam attempts to block China from routing exports through third-party nations, while a U.K. deal partially exempts British steel, aluminum, and auto exports from higher duties — though most products still face a 10% baseline tariff.

Legal and Economic Ramifications

Trump’s actions are facing legal scrutiny. A May ruling by the U.S. Court of International Trade said the president may have exceeded his authority by invoking an economic emergency to bypass Congress. His administration is currently appealing the decision.

Analysts warn that higher tariffs will raise prices on goods like autos, electronics, and appliances, disproportionately impacting middle- and lower-income Americans, as importers are likely to pass costs on to consumers. Trump has publicly admonished large retailers such as Walmart, urging them to absorb the increased expenses instead of fueling inflation.

“It’s all done. We’ll make some deals, but for the most part we’re going to send a letter,” Trump told reporters, signaling both finality and continued volatility.

Wendy Cutler, a former trade official and vice president at the Asia Society Policy Institute, called the new tariffs “unfortunate” given the strong economic partnerships that Japan and South Korea have long maintained with the United States.