Trump Unleashes New Tariffs: 25% on Japan and South Korea Starting August!

WASHINGTON/BRUSSELS (Reuters) — President Donald Trump announced Monday that the U.S. will impose a 25% tariff on imports from Japan and South Korea starting August 1. This marks the first two of an expected 12 letters to trading partners outlining new levies they face.

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 percent that we charge, Trump said in letters to the leaders of the two Asian countries, which he posted on his Truth Social platform.

Trump later announced additional tariffs: 25% on Malaysia and Kazakhstan, 30% on South Africa, and 40% on Laos and Myanmar. The rate for South Korea remains unchanged from Trump’s April 2 announcement, while Japan’s rate is now one percentage point higher. A week after the initial announcement, Trump capped all “reciprocal tariffs” at 10% until July 9 to allow for negotiations. To date, only two agreements have been reached, with Britain and Vietnam. Neither the Japanese nor South Korean embassies immediately responded to the announcement. White House spokeswoman Karoline Leavitt stated in a briefing that about 12 countries will receive letters from Trump, though she did not identify them. She added that Trump would sign an executive order on Monday formally extending the July 9 deadline to August 1.
There will be additional letters in the coming days, Leavitt said, adding that we are close on some deals.

European Union sources familiar with the matter told Reuters on Monday that the EU will not receive a letter outlining higher tariffs. U.S. stocks fell in response to the news, marking the latest market disruption since Trump reignited a global trade war upon returning to office in January. His actions have repeatedly rattled financial markets and sent policymakers scrambling to protect their economies.
U.S. stocks were driven to near bear-market territory by his cascade of tariff announcements through the early spring but quickly rebounded to record highs in the weeks after he put the stiffest levies on hold on April 9.