Donald Trump announces 25% tariffs on imports from Japan and South Korea, warns against retaliation

Mint

5 days ago

US President Donald Trump announced on Monday (July 7) that his administration will impose a 25 percent tariff on all imports from Japan and South Korea, citing long-standing trade imbalances and what he described as unfair tariff and non-tariff barriers. The tariffs are set to take effect from August 1, 2025.
In identically worded letters to South Korean President Lee Jae-myung and Japanese Prime Minister Ishiba Shigeru, Trump said the United States had shown 'great commitment' by continuing trade relations with both countries despite 'significant' deficits.
'We have decided to move forward with you, but only with more balanced, and fair, TRADE,' Trump wrote in the letters released by the White House.
Trump made it clear that if either country responds by raising its own tariffs on US goods, the US would increase its new 25% levy proportionally.
'If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge,' he warned.
Trump emphasised that the persistent trade deficit with both nations was 'a major threat to our Economy and, indeed, our National Security.'
He criticized 'Tariff and Non Tariff Policies and Trade Barriers' in both countries, arguing they have resulted in 'unsustainable trade deficits' for the US.
The president offered a path for Japanese and South Korean companies to avoid the tariffs: move manufacturing to the United States.
'There will be no Tariff if [you] decide to build or manufacture product within the United States,' Trump wrote. He promised expedited approvals, 'in a matter of weeks.'
While laying out the new penalties, Trump left the door open for renegotiation if Japan and South Korea open their markets further.
'If you wish to open your heretofore closed Trading Markets to the United States... we will, perhaps, consider an adjustment to this letter,' he said.
With the 90-day pause on sweeping tariffs set to expire July 9, the United States is preparing to reimpose trade duties on a wide range of global imports, following US President Donald Trump's controversial tariff announcement on April 2 — dubbed 'Liberation Day.' At the time, Trump claimed the US was being 'ripped off' by foreign economies and pledged to correct 'unfair trade practices.'
While the initial shock prompted global market turmoil, the administration suspended the tariffs temporarily. Now, as the deadline approaches, concerns are rising among trading partners.
Despite repeated claims of '90 deals in 90 days,' progress has been sluggish. So far, the US has only finalised trade pacts with Britain and Vietnam, and reached a temporary tariff de-escalation with China, where duties had reached triple-digit levels on some goods.
'Unless partners want to come back and try to negotiate, this is the rate their products will face,' Trump economic adviser Bessent said of the letters sent to US allies.
Trump has also threatened an additional 10% tariff on countries aligning with the BRICS bloc (Brazil, Russia, India, China, and South Africa), accusing them of following 'anti-American policies.' The threat followed public condemnation of Trump's tariff strategy by several BRICS leaders during a recent summit.
There was no official confirmation from the White House as of Monday on whether Trump would formally extend the tariff deadline past July 9. However, the administration has indicated that higher rates will begin taking effect August 1, giving some countries more time to negotiate and potentially avoid duties.
The European Commission said EU chief Ursula von der Leyen held a 'good exchange' with Trump over the weekend in an attempt to de-escalate the standoff. Other allies are also said to be lobbying to avert the sweeping tariffs.
Under the new policy, Trump has outlined a 10% base tariff on most countries, with reciprocal rates up to 50% for nations he claims have imposed unfair trade practices on the US.