Trump announces 25% tariffs on Japan and South Korea

Pres. Trump to send tariff letters to countries

President Trump spoke to members of the media at Joint Base Andrews after returning from Iowa and shared that he will begin sending letters to countries on Friday specifying what tariff rates they will face on imports to the United States.

WASHINGTON - President Donald Trump on Monday said he would place a 25% tax on goods imported from South Korea and Japan.

Trump cited persistent trade imbalances with two of the United States’ most crucial allies in Asia. 

When do the tariffs start? 

What we know:

The tariffs on Japanese and Korean goods imported into the U.S. will begin on August 1. 

Trump also planned to sign an executive order on Monday to extend the 90-day deadline for all countries to negotiate a deal on tariffs to August 1. The original deadline was July 9.

The president warned both countries to not retaliate by increasing their own import taxes or else his administration will further increase tariffs. 

What they're saying:

"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," Trump wrote in the letters to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung.

The president also announced he would impose new tariff rates for:

• Malaysia (25%)
• Kazakhstan (25%)
• South Africa (30%)
• Laos (40%)
• Myanmar (40%)
• Cambodia (36%
• Thailand (36%)
• Serbia (35%)
• Bangladesh (35%)
• Indonesia (32%)
• Bosnia (30%)
• Herzegovina (30%)
• Tunisia (25%)

For context:

What we don't know:

So far, neither Japan nor Korea have responded. 

Trump’s tariffs

U.S. President Donald Trump speaks to reporters alongside Canadian Prime Minister Mark Carney in the Oval Office at the White House on May 6, 2025 in Washington, DC. (Photo by Anna Moneymaker/Getty Images)

The backstory:

Trump sparked uncertainty in the financial markets by announcing tariffs on dozens of countries.

The president then announced a 90-day negotiation window to calm the markets during which goods from most countries were taxed at a baseline of 10%. The extended deadline has led to announced deals only with the United Kingdom and Vietnam.

Trump is relying on tariff revenues to help offset the tax cuts he signed into law on July 4, a move that could shift a greater share of the federal tax burden onto the middle class and poor as importers would pass along much of the cost of the tariffs.

By the numbers:

The U.S. ran a $69.4 billion trade imbalance in goods with Japan in 2024 and a $66 billion imbalance with South Korea, according to the Census Bureau.

Big picture view:

Washington has separately been seeking higher duties on specific products such as automobiles and semiconductors, which are key exports for South Korea’s trade-dependent economy. There are growing concerns in Seoul that Trump may also demand a broader deal requiring South Korea to pay significantly more for the 28,000 U.S. troops stationed in the country to deter North Korean threats.