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President Donald Trump has announced his first set of new tariffs, imposing a 25% duty on all imports from Japan and South Korea starting August 1, after previously warning that both countries had to make a deal by July 9 to avoid him setting a tariff.
Some shit you should know before you read: Just to give you a quick recap, President Donald Trump has made tariffs a central focus of his trade policy since returning to office. In early April, he imposed a broad set of import taxes on dozens of countries, using a new formula tied to the US trade deficit. Despite vowing to move forward with the tariffs, they were quickly paused for 90 days to give individual countries time to negotiate new trade agreements, with an initial deadline set for July 9. So far, Vietnam and the UK are the only countries that have struck new trade deals with the US.
What’s going on now: In a notable development, President Donald Trump announced that the United States will impose a 25% blanket tariff on all imports from Japan and South Korea, effective August 1, 2025. The announcement was delivered via Truth Social, where Trump posted screenshots of official letters sent to Japanese Prime Minister Ishiba Shigeru and South Korean President Lee Jae-myung, outlining the new tariff policy.
In both letters, Trump argued that the tariffs are a necessary response to “persistent, unfair” trade deficits, writing, “Please understand this 25% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country.” He also warned that any attempt by the two nations to retaliate with tariffs of their own would result in reciprocal increases by the US.
The letters further stated that the 25% tariffs are separate from additional sector-specific duties that may be applied later. Trump emphasized that transshipped goods—products routed through third-party countries to avoid tariffs—will still be subject to the full tariff rate. He offered an incentive for foreign companies to relocate production to the US, stating that products manufactured domestically would not face tariffs and would benefit from an expedited approval process, often “in a matter of weeks.”
Trade data: In terms of trade volume, Japan and South Korea are among the United States’ top trading partners. According to the Office of the United States Trade Representative (USTR), in 2024, the US imported $148.3 billion in goods from Japan and $125.2 billion from South Korea. Major imports include automobiles, semiconductors, machinery, and consumer electronics—sectors likely to feel the brunt of the new tariffs. It should be noted that if the imports remain the same, the tariffs will result in $37.075 billion in additional revenue from Japan and $31.3 billion from South Korea.
This all comes as top US officials have indicated that similar tariff letters would be sent to 12 to 15 countries between Monday and Wednesday. Speaking to the press, Treasury Secretary Scott Bessent said the administration is preparing “several trade-related announcements” in the next 48 hours and noted that his office had received numerous new offers from countries hoping to avoid the August 1 tariff enforcement. Bessent also described the letters as “pretty standard,” saying they include a general welcome to trade, followed by the stated tariff rate and an open door for further negotiations.
