US President Donald Trump on Monday announced that he would impose a 25 per cent tariff on Japanese and South Korean goods from August 1.
Letters Sent to Global Leaders
The new tariff announcement is made as Trump announced that he would be sending letters to the leaders of ten countries on Monday.
The US president made the announcement on his social media site Truth Social, where he published copies of letters that he wrote to the leaders of each nation.
Donald Trump Issues Warning Against Retaliation
The letters to the South-East Asian nations cautioned them against retaliating through raising their own import duties or else the US administration would raise import duties which could negatively impact the auto and electronics industries of Japan and South Korea.
“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 per cent that we charge,” Trump said in the letters to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung.
India Also on the Radar of US President Donald Trump
India is also expected to receive the much-awaited tariff letter from the US President today. New Delhi and Washington have been engaged in comprehensive negotiations for a bilateral trade deal.
The two nations’ agreement is to be finalized before the July 9 deadline, after which India (16 per cent pending and 10 per cent in place) will face a tariff of 26 per cent.
Broader Strategy to Rebalance Trade
Trump’s move signals a renewed wave of economic nationalism as he eyes tighter trade balances with key Asian exporters. Analysts believe this strategy is aimed at pushing for greater leverage in upcoming trade talks while energizing his voter base ahead of the 2025 political cycle.
Both Japan and South Korea are among the top five exporters of automobiles and semiconductors to the United States, and a 25 per cent tariff could result in billions of dollars in new costs for those industries. Experts warn the move could ignite retaliatory tariffs or legal actions via the World Trade Organization.
Despite criticism from economists and trade experts, Trump’s team remains firm that the tariff threats are necessary to rebalance trade and revive American manufacturing.