Donald Trump
On Monday, July 7, US President Donald Trump announced a 25% tariff on imports from South Korea and Japan, saying these rates are “far less” than what he believes is necessary to address the trade deficit with both countries.
Trump stated that, while the US is prepared to continue trading despite the ongoing deficit, future trade will be “more fair and balanced.”
The new tariffs are set to take effect from August 1, according to Trump’s announcement on his Truth Social platform. He also clarified that South Korea and Japan would be among the first to receive formal notification.
“Starting on August 1, 2025, we will charge Japan/Korea a Tariff of only 25% on any Japanese products sent into the United States, separate from all Sectoral Tariffs. Goods transshipped to evade a higher Tariff will be subject to that higher Tariff. 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 in letters directed to both countries.
Trump also posted screenshots of these letters, which he sent to Japanese Prime Minister Ishiba Shigeru and South Korean President Lee Jae-Myung, explaining the new tariff policy.
He warned that if either country responded by raising duties on US goods, the US would add those rates on top of the newly announced 25% tariffs.
“Please understand that these Tariffs are necessary to correct the many years of Tariff, and Non-Tariff, Policies and Trade Barriers, causing these unsustainable Trade Deficits against the United States. This Deficit is a major threat to our Economy and, indeed, our National Security!” Trump said in the letters.
He added that if Japanese or South Korean companies chose to manufacture their products within the United States, they would be exempt from these tariffs. Trump promised to expedite any necessary approvals, saying such processes would be handled “quickly, professionally, and routinely — In other words, in a matter of weeks.”
The announcement followed Trump’s statement that the US would soon send out official, final, and non-negotiable letters to multiple countries, laying out the new tariff rules and terms for trade deals.
This marks a shift away from traditional negotiations to a more direct approach, coming just two days before the July 9 expiration of a 90-day tariff suspension that began in April.
Earlier proposals included a base 10% tariff on most imports, with potential increases of up to 70% for certain countries. Trump previously described these offers as “take it or leave it,” aiming to accelerate negotiations and move forward with his tariff plans.
ALSO READ: Trump’s ‘Anti-American’ Threat: What It Means for BRICS And How Will They React?
Vladimir Putin during his visit to India, announced that the capacity of the Kudankulam Nuclear…
The Congress alleged that Mallikarjun Kharge and Rahul Gandhi were not invited to the Presidential…
Redmi is expected to launch its Note 15 5G series which will have three amazing…
