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Last Updated:July 07, 2025, 23:01 IST
US President Donald Trump on Monday placed a 25% tax on goods imported from Japan and South Korea, citing persistent trade imbalances with the two crucial US allies in Asia.

US President Donald Trump. (File photo)
US President Donald Trump on Monday fired off letters to Japan and South Korea, announcing 25% tariffs on imports and stressing that these tax rates are “far less" than what is needed to eliminate the “trade deficit" between the US and the trading partners.
The US President cranked up the pressure as he started dispatching first batch of letters to various countries, days before his deadline for trade partners to reach new deals expires.
Trump made the announcement on his Truth Social platform, stating that these tariff slabs will come into effect from August 1.
In the two nearly identical letters, Trump said he took particular issue with the trade deficits the United States runs with both countries, meaning America buys more goods from there compared to the amount that American businesses export to those countries.
“Starting on August 1, 2025, we will charge Japan/Korea a Tariff of only 25% on any and all 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 said in the separate letters sent to Seoul and Tokyo.
He further stated that the tariffs would be set in response to other policies that he deemed are impeding American goods from being sold abroad.
“Please understand that the 25% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country," he said in the letter sent to Tokyo and Seoul.
The US President further encouraged both the countries to manufacture goods in the US to avoid tariffs.
“There will be no tariff if Korea or Japan or “companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely-In other words, in a matter of weeks," he added.
The letters further warned both the nations not retaliate by increasing their own import taxes, or else the Trump administration would increase import taxes that could damage the auto and electronics sectors of Japan and South Korea, two crucial partners for the US in countering China’s influence.
“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% that we charge," Trump wrote in the letters to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung.
Additionally, in a separate post, Trump also threatened an additional 10% tariff on countries aligning with the emerging BRICS bloc, accusing them of “anti-Americanism" after they criticised his trade policies at a summit held in Brazil’s Rio on Sunday.
Meanwhile, US Treasury Secretary Scott Bessent said the re-imposed tariffs would not take effect until 1 August, giving negotiators a few extra weeks to reach agreements.
Earlier this month, Trump had said that he had signed letters to 12 countries outlining the various tariff levels they would face on goods they export to the US with the “take it or leave it" offers.
In a global trade war that has upended financial markets and set off a scramble among policymakers to guard their economies, Trump in April announced a 10% base tariff rate and additional amounts for most countries, some ranging as high as 50%.
However, all but the 10% base rate were subsequently suspended for 90 days to allow more time for negotiations to secure deals.
That period ends on July 9, although Trump early on Friday said the tariffs could be even higher — ranging up to 70%.
Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben...Read More
Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben...
Read More
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Washington D.C., United States of America (USA)
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News world Donald Trump Cranks Up Pressure On Japan, South Korea; To Impose 25% Tariff On Imports