- Trump hits Japan and South Korea with 25% tariffs starting August 1 to address trade imbalances.
- No tariffs if manufacturing moves to the U.S., with Trump promising fast-track approvals for relocation.
- Trump warns of tariff retaliation: Any increase by allies will be matched and added to the U.S. rate.
President Donald Trump announced Monday that Japan and South Korea will face new 25% tariffs on goods exported to the United States starting August 1. The announcement came in the form of formal letters, which Trump posted to his Truth Social account.
The tariff for Japan is slightly higher than the 24% rate Trump revealed at his April 2nd Liberation Day event. South Korea’s rate remains unchanged.
According to the letters, the tariffs are still lower than what would be required to fully balance the long-standing trade deficit the U.S. holds with both countries. Trump emphasized that the tariffs won’t apply if Japanese or South Korean companies move their manufacturing into the United States. “My administration will work to get any necessary approvals in a matter of weeks,” he said, encouraging foreign investment in U.S.-based production.
Trump also issued a clear warning to both countries: retaliate, and the tariffs will go even higher. “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% that we charge,” he wrote.
While critics argue the move could escalate tensions with key allies, supporters say it’s a bold step to protect American workers and encourage domestic manufacturing.
Whether this leads to new trade deals or economic standoffs, one thing is certain—Trump isn’t backing down when it comes to putting America first at the negotiating table.