By Josh Bork
WASHINGTON (AP) – President Donald Trump on Monday imposes a 25% tax on goods imported from Japan and South Korea, citing a sustained trade imbalance with two important Asian US allies.
Trump provided notification of tariffs beginning August 1 by posting a letter on the true society addressed to leaders of both countries. The letter warned that both countries would not retaliate by increasing their import taxes. Otherwise, the Trump administration would increase tariffs even more.
“If we decide for any reason to raise tariffs, whatever the number we choose will be added to the 25% we charge,” Trump wrote to Japanese Prime Minister Isgar and South Korean President Lee Jae Myung.
The letter wasn’t the final word from Trump on tariffs, and as with another episode of the global economic drama that the US president centered around himself.
Trump suggests that despite many US consumers starting to value cars, electronics and other products from Japan and South Korea, they are suggesting that they are a relief package against past trade deficits. However, it is unclear what he is gaining strategically against China by challenging two important Asian partners who can compete with China’s economic emphasis.
“These tariffs may change upward or downward depending on your relationship with your country,” Trump wrote in both letters.
With the new tariff rate going into effect in about three weeks, Trump is setting up a period of intense speech between the US and its trading partners to reach the new framework.
Trump initially caused financial market hysteria by announcing tariff rates in dozens of countries, including 24% in Japan and 25% in South Korea. To calm the market, Trump announced a 90-day negotiation period, during which items from most countries were taxed at a baseline of 10%.
The 90-day negotiation period will technically end before Wednesday, even if several executives and Trump himself suggested that the three-week period before implementation would be similar to overtime due to additional consultations.
Trump relies on tariff revenue to offset the tax cuts he signed into law on July 4th.
His trade framework with Vietnam is clearly designed to keep China out of routing goods bound by the US through its country, but the allocation of the UK framework saves the country from higher tariff rates charged for steel, aluminum and automobiles.
According to the Census Bureau, the US operates a property trade imbalance with Japan in 2024 and a $66 billion imbalance with South Korea.
Original issue: July 7, 2025, 12:42pm EDT
