Trump Declares 25% Tariffs on Imports from Japan and South Korea Effective August 1
President Trump declared on Monday his decision to enforce 25% tariffs on imports from Japan and South Korea starting August 1. This move is part of a wider tariff campaign impacting 14 countries. The tariffs, ranging from 25% to 40%, also target countries such as South Africa, Malaysia, and Thailand.
The announcement was made through a series of letters posted on Trump’s Truth Social account. Concurrently, the White House signed an executive order postponing the original July 9 deadline to August 1. Trump justified the tariffs citing “longterm, and very persistent” trade deficits.
Stock markets responded negatively to the news. The Dow Jones fell 422 points (0.94%), the S&P 500 declined 0.79%, and the Nasdaq dropped 0.92%. The iShares MSCI South Korea ETF fell more than 3% following the announcement.
Trump proposed an exemption clause, stating there would be “no Tariff if Japan, or companies within your Country, decide to build or manufacture product within the United States.” This move signifies a return to Trump’s April tariff levels after a temporary pause.