US President Donald Trump announced on Monday (July 7) that his administration would store 25 % tariff on all imports from Japan and South Korea, quoting long -term business imbalances and what he described as an unfair tariff and non -tariff barriers. The tariffs are ready from August 1, 2025.
Trump said that in identically formulated letters to South Korean President Lee Jae-myung and the Japanese Prime Minister Ishib Shiger said that the United States has shown a “major commitment” continuing business relations with both countries despite “significant” deficits.
“We decided to move with you forward, but only with a more balanced and fairer trade,” Trump wrote in letters issued by the White House.
Trump warns against retaliation tariffs
Trump made it clear that if a country reacted by increasing its own tariffs to American goods, the US would proportionally increase its new 25% retribution.
“If for any reason you decide to increase your tariffs, it will be 25%that we charge, no matter what you choose to increase them,” he warned.
Business frame deficit framed as the threat of national security
Trump stressed that the persistent trade deficit with both nations was “the main threat to our economy and indeed our national security”.
In both countries he criticized “tariff and non -appreciation policies and business barriers” and claimed that the US resulted in “unsustainable business deficits”.
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No tariff for American production
The President offered a journey of Japanese and South Korean companies to avoid tariffs: Move production to the United States.
“There will be no tariff if (you) decide to build or produce a product in the United States,” Trump wrote. Promised to speed up approval: “In a few weeks.”
Tariffs could be re -modified
When setting new sanctions, Trump left the door open if Japan and South Korea continue to open their markets.
“If you want to open your closed trade markets to the United States … We may consider adjusting this letter,” he said.
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The tariffs “Liberation Day” will return
With 90-day pauses on sweeping tariffs expired 9. At that time, Trump claimed that the US was “torn” by foreign economies and committed to rectifying “unfair business practices”.
While the initial shock led to the riots on the global market, the administration temporarily suspended tariffs. Now, as the deadline is approaching, concerns are growing among business partners.
Limited progress in business agreements
Despite repeated demands on “90 stores in 90 days”, progress was slow. So far, the US has only completed commercial contracts with Britain and Vietnam and have achieved temporary de-escallation of tariffs with China, where the duties reached a three-digit level for some goods.
“If the partners do not want to return and try to negotiate, it is the rate that their products will face,” said Trump Economic Adviser Bessnt about letters sent by the US ally.
Threats against bricks-zooming nations
Trump also threatened another 10% tariff on countries that align with the BRICS block (Brazil, Russia, India, China and South Africa), and accuse them of adherence to “anti -American policies”. The threat followed by a public condemnation of Trump’s tariff strategy of several BRICS leaders during the recent summit.
White House Tichý o extension
Since Monday, there was no official confirmation from the White House as to whether Trump would formally extend the term of tariffs to 9 July. However, the administration indicated that higher rates would start to apply 1 August, which gives some countries more time to negotiate and potentially avoid duties.
EU, others are trying to respond
The European Commission said that EU chief Ursula von der Leyen organized a “good exchange” with Trump on the weekend in an effort to cancel the escalation of a distance. Other allies are also said to lobby to avert large tariffs.
Tariffs structure: 10% base, up to 50% for “non -pro -codes” trade
As part of the new Trump policy, he outlined 10% of the basic tariff in most countries, with a rate of up to 50% for nations claiming to have stored unfair business practices in the US.
From now on, there are no essential trade agreements that would allow most allies to avoid imminent tariffs. Trump said on Sunday that the US is “almost concluded by several trade agreements” and expects to announce to the countries of final rates by July 9th.
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