President Donald Trump announced Monday that the United States will impose 25% tariffs on imports from Japan and South Korea starting August 1.
The tariffs were revealed in two separate letters sent to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung. In both, Trump declared that the new levies could be “modified, upward or downward,” depending on each country’s future relationship with the U.S.
“If you wish to open your heretofore closed Trading Markets to the United States, and eliminate your Tariff, and Non Tariff, Policies and Trade Barriers, we will, perhaps, consider an adjustment to this letter,” Trump wrote.
He emphasized that there would be no tariffs at all for companies from Japan or South Korea that relocate manufacturing to the U.S. Trump added that his administration would fast-track permits and approvals for any such investment. “In a matter of weeks,” he promised.
While Japan and South Korea are not part of the China- and Russia-led BRICS bloc, Trump’s announcement followed his broader warning on Sunday that any nation aligning with BRICS could face an additional 10% tariff. He has previously introduced a reciprocal tariff policy, targeting countries with large trade surpluses against the U.S.
“Despite having a significant Trade Deficit with each country… we have decided to move forward with you, but only with more balanced, and fair, TRADE,” Trump said.
Markets reacted swiftly to the news. The Dow dropped over 500 points, while the S&P 500 and Nasdaq each fell nearly 1%. Trump has repeatedly dismissed fears that tariffs would stoke inflation, pointing to previous media predictions that he says failed to materialize.
The new tariffs are part of a broader effort to reassert America’s economic power and end decades of what Trump calls unfair trade policies. “You will never be disappointed with The United States of America,” he concluded in both letters.