Trump says 25% tariffs to be slapped on Japan, S. Korea on Aug. 1

The Mainichi

5 days ago

WASHINGTON (Kyodo) -- The United States will impose 25 percent tariffs on imports from Japan and South Korea starting Aug. 1, President Donald Trump said Monday, citing trade imbalances and further ramping up pressure on the key U.S. allies to make compromises to get deals done.
In nearly identical letters addressed to the leaders of Japan and South Korea, which Trump posted in full on his Truth Social platform, he told each that trade relations with his country have been "far from Reciprocal."
"Please understand that the 25% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country," Trump wrote to both Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae Myung.
Trump also warned each country that any increases to their tariffs on U.S. goods will be met with an equivalent tariff hike by his administration, above and beyond the 25 percent rate.
At the same time, Trump said he may consider making "an adjustment" if the countries remove what he claimed to be trade barriers.
"These Tariffs may be modified, upward or downward, depending on our relationship with your Country," he said.
Under Trump's so-called reciprocal "Liberation Day" tariffs, the administration has also levied a baseline, or universal, duty of 10 percent covering imports from almost all countries in the world.
Until now, Japan was facing an additional tariff of 14 percent, for a total rate of 24 percent. South Korea's was 25 percent.
Trump said the updated rates are completely separate from the higher industrial-sector tariffs that have already taken effect, such as those targeting all imports of cars, auto parts and steel.
The signed letters were posted two days before a 90-day pause on country-specific tariffs was due to expire and despite weeks of bilateral negotiations between the administration and each of the Asian allies.
Both Japan and South Korea have been dealt a severe economic blow by Trump's hike in April of a tariff on imported passenger vehicles to 27.5 percent from 2.5 percent.
Meanwhile, Trump has upped the pressure especially on Japan in recent weeks, venting frustration that it does not import a significant amount of American cars or rice.
With the U.S. leader showing no signs of granting Tokyo's persistent requests to remove the auto and other tariffs, the new 25 percent rate has created another headache for Japanese officials trying to break the deadlock in negotiations with Washington.
Trump later posted on social media similar trade letters to the leaders of Bangladesh, Bosnia and Herzegovina, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Kazakhstan, Serbia, South Africa, Thailand and Tunisia, notifying them of tariff rates from 25 percent to 40 percent.
Trump unveiled sweeping country-specific tariffs on April 2, targeting about 60 countries with which the United States runs trade deficits, before pausing them for 90 days to have time for talks mainly with its major trading partners.
On Monday, the White House said the pause will be extended to Aug. 1, meaning that the time for dealmaking could continue until then.
Although top U.S. trade officials had said they could clinch 90 trade deals in 90 days, only two agreements -- with Britain and Vietnam -- have been sealed so far.
U.S. Treasury Secretary Scott Bessent said Monday in a CNBC interview that the administration is set to announce "several" trade deals over the next 48 hours, without naming any countries or offering other details.