US President Donald Trump said on July 7, 2025, that his administration will slap 25% tariffs on imports from South Korea and Japan beginning August 1.
This was stated in official letters issued to the leaders of both countries, with Trump claiming that the tariffs are a response to “unfortunately, far from reciprocal” trade arrangements.
The duties are part of a larger campaign aimed at up to 15 nations that have yet to complete new trade agreements with the United States, following a 90-day deferral of previously announced levies.
Trump emphasized that the 25% duty is meant to solve the US trade deficit with both countries, and warned that any retaliatory tariffs imposed by Japan or South Korea would be met with equal hikes by the US.
He also expressed a willingness to drop or adjust tariffs if Japan and South Korea opened their markets to US goods and reduced their own trade obstacles.
The announcement sparked major market turbulence. US stock indices, notably the Dow Jones Industrial Average and the S&P 500, fell dramatically on the announcement, indicating investor concerns about rising trade tensions with key allies and the possibility of a new trade war.
These duties follow previous threats and temporary suspensions; in April, the Trump administration placed a 10% duty on major trading partners, with Japan and South Korea fearing significantly higher rates if discussions failed.
So far, both Japan and South Korea have rejected US proposals for increased market access and exemptions from existing tariffs on crucial sectors such as automobiles, steel, and electronics. The Trump administration’s letters also stated that no tariffs will be placed on companies from these nations that opt to produce in the United States, with Trump vowing to expedite permits for such ventures.
The additional tariffs represent a dramatic escalation in US trade policy, as they target two of the country’s closest Asian partners during ongoing, unresolved negotiations. The situation remains fluid, with the prospect of more changes depending on the outcome of ongoing talks and answers from Japan and South Korea.
