President Donald Trump has announced that the United States will impose a 25% tariff on goods imported from Japan and South Korea, effective August 1, 2025.
This decision was communicated through letters posted on Truth Social, addressed to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung.
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The letters sent to the respective countries indicate that these 25% tariffs are separate from existing sector-specific duties, such as those on cars, steel, and electronics, which are major exports from both countries.
Trump emphasized that the tariffs could be avoided if Japan and South Korea build or manufacture products within the U.S., promising streamlined approvals for such investments.
He also warned that any retaliatory tariffs imposed by these nations would result in equivalent increases to the U.S. tariff rate.
The letters suggest flexibility, noting that tariffs “may be modified, upward or downward, depending on our relationship with your Country.”
This move follows a 90-day pause on similar tariffs announced in April 2025, which had temporarily reduced rates to a flat 10% after global market turmoil.
The reimposition of higher tariffs has sparked concerns, with U.S. financial markets reacting negatively.
Japan and South Korea, close U.S. allies, expressed regret and committed to intensified trade negotiations before the August 1 deadline.
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Japanese Prime Minister Ishiba called the tariffs “deeply regrettable” but noted progress in talks to avoid higher levies, while South Korea’s Trade Ministry pledged to seek exemptions, particularly for autos and steel.
Former U.S. trade negotiator Wendy Cutler described the tariffs as “unfortunate” but suggested there’s still room for breakthroughs, given the strategic partnerships with both nations.