President Trump unveiled a 25 percent tariff on all imports from Japan and Korea, kicking off the first of at least a dozen trade announcements expected in the coming days.
In a pair of Truth Social posts on Monday, the 47th president shared letters he sent to Japan’s prime minister, Ishiba Shigeru, and South Korean President Lee Jae-myung informing them of the reciprocal tariffs that they are set to face on August 1st.
In the nearly identical letters that read remarkably similar to one of the president’s social media posts, Mr. Trump wrote that “we have decided to move forward with you, but only with more balanced, and fair, TRADE.” He added that the 25 percent rate “is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country.”
The president offered the nations extra time to strike a deal before August 1 by writing that “we will, perhaps consider an adjustment ” and “ These tariffs may be modified, upward or downward, depending on our relationship with your Country.”
American consumers rely on Japan and South Korea for a wide array of products that could see steep price increases if Trump’s import taxes go into effect. Among the most common are vehicles, health and beauty products, optical equipment such as cameras, and clocks and watches.
The stock market took a tumble on the news, with the Dow Jones Industrial Average, the S&P 500 and the Nasdaq composite all falling at least 1 percent on Monday afternoon.
The announcement comes just a few days before the president’s reciprocal tariff rates were set to kick in on July 9 following a 90-day pause. The White House appears to have reset that deadline to August 1st, giving trade partners an additional three weeks to negotiate trade deals.
The import tax scheme was rolled out on April 2 — a date the president dubbed “Liberation Day” that included levies of up to 50 percent on many of America’s trading partners. In the original plan, Japan and South Korea faced import tariffs of 24 percent and 25 percent, respectively.
Days later, the president announced his plan to lower tariffs to 10 percent for a three-month period to give countries time to broker deals with America. So far, the administration has reached only two preliminary deals — with Britain and Vietnam.
This week, the White House has shared the president’s plans to send letters to 12 to 15 countries that have not yet brokered trade agreements with America. On Monday, Treasury Secretary Scott Bessent told CNBC’s “Squawk Box” that “it’s going to be a busy couple of days.”
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