The U.S. plans a 25% tariff on products from South Korea and Japan starting August 1, amid ongoing trade negotiations and calls for fair trade practices.**
U.S. Set to Impose 25% Tariffs on South Korean and Japanese Imports**
U.S. Set to Impose 25% Tariffs on South Korean and Japanese Imports**
President Trump announces impending tariffs as negotiations with key trade partners stall.**
The United States is preparing to impose a hefty 25% tariff on imports from South Korea and Japan, effective August 1, according to a recent announcement by President Donald Trump. The decision, shared via social media, follows letters sent to the respective leaders of these nations. As the 90-day pause on aggressive tariffs nears its end, the White House indicated that similar communications will be dispatched to other countries.
This latest move suggests a continued commitment to Trump's earlier stance on tariffs, echoing the levels first outlined in April, wherein he announced a 24% tariff on Japanese goods and a 25% tariff on South Korean products. These tariffs are part of a broader initiative dubbed "Liberation Day," targeting trade from multiple countries with proposed levies exceeding 40% on certain imports.
Initially, the Trump administration faced backlash and a jittery financial market reaction, leading to a suspension of some of the most extreme tariff measures to foster negotiations, although a 10% tariff remained intact. With the negotiation window closing on July 9, Trump has decided to move forward with the tariffs set for August, extending the deadline for discussions.
Treasury Secretary Scott Bessent noted that negotiations had seen a shift, mentioning an influx of new proposals from various stakeholders. Trump's attribution of the tariffs as "reciprocal" reflects his view of combating what he calls unfair trade practices against U.S. exports. Tariffs have also been proposed for sectors deemed crucial, such as steel and automobiles, with ongoing negotiations revealing them as contentious issues, particularly with Japan and South Korea.
While the U.S. has established agreements with the UK and Vietnam, as well as a partial arrangement with China, these have often resulted in increased tariffs with some foundational disputes still lingering. Furthermore, the European Union is reportedly engaged in discussions to maintain a provisional 10% tariff on goods entering the U.S. while tackling Trump's proposed 25% tariffs on automobiles and a significant 50% tax on steel and aluminum imports.
In a recent statement, European Commission President Ursula von der Leyen described her recent discussions with Trump as productive. Just weeks prior, Trump had threatened EU nations with steep tariffs unless agreements were reached promptly. In a related context, he warned Japan that failure to finalize a deal by midweek could lead to tariffs of up to 35%.
