President Donald Trump on Monday announced the imposition of 25% tariffs on goods from Japan and South Korea, escalating pressure on the two key U.S. allies to reach new trade agreements with Washington. The move also targets around a dozen other countries, including South Africa, Malaysia, Myanmar, Laos, and Kazakhstan, where duties could range from 25% to 40%.
The president had previously warned that tariffs delayed in April would be reimposed starting this week. Letters sent to the affected nations stated that the trading relationships with the U.S. remained “far from reciprocal,” prompting the increase in levies.
The new tariffs are set to take effect on August 1, with Trump warning that any retaliation would be met with further escalation. Currently, these nations already face a 10% tariff imposed broadly on U.S. trading partners, but Trump hinted that changes to trade policies could result in adjustments: “We will, perhaps, consider an adjustment to this letter.”
Japan’s Prime Minister Shigeru Ishiba responded over the weekend, saying he “won’t easily compromise” during trade talks. Meanwhile, White House Press Secretary Karoline Leavitt said Trump would sign an order later on Monday delaying the originally scheduled July 9 tariff hike to the new August deadline. She confirmed that, in addition to Japan and South Korea, approximately 12 more countries would receive similar letters soon.
Leavitt added that Trump would soon outline “reciprocal tariff rates” for each country as negotiations progress. The president initially announced sweeping global tariffs on April 2—calling it “Liberation Day”—but market turmoil forced him to pause their implementation for 90 days.
While the administration had once promised “90 deals in 90 days,” progress has been slow. So far, only trade pacts with the United Kingdom and Vietnam have been finalized. The U.S. and China have also agreed to temporarily reduce tariff levels on each other’s goods, though that agreement is set to expire in mid-August.
When asked why South Korea was among the first targets, Leavitt said simply, “It’s the President’s prerogative, and those are the countries he chose.”
Wendy Cutler, Vice President of the Asia Society Policy Institute, noted that the announcement sends a “chilling message” to close partners like Japan and South Korea—both of whom have made substantial manufacturing investments in the U.S. in recent years.
U.S. Treasury Secretary Scott Bessent said several trade announcements are expected within 48 hours, suggesting that the new tariff threats are pushing countries back to the negotiating table. “My mailbox was full last night with a lot of new offers, a lot of new proposals,” Bessent said in an interview with CNBC, adding that meetings with China are planned in the coming weeks.
While high-level talks between Washington and Beijing have taken place in Geneva and London, their mutual tariff pause is set to expire by mid-August. Trump’s trade adviser Peter Navarro insisted the administration is satisfied with its progress so far.
Trump has also threatened to impose a further 10% tariff on countries aligning with the BRICS bloc, accusing them of pursuing “anti-American policies” following criticism at a recent summit.
For now, U.S. trading partners are scrambling to avoid the looming tariffs. The European Commission confirmed that EU chief Ursula von der Leyen had a “good exchange” with Trump regarding trade issues during a conversation on Sunday.
— AFP
