Trump announces 25% tariffs on imports from Japan and South Korea

US President Donald Trump announced on Monday that the United States will impose a 25% blanket tariff on imports from Japan and South Korea beginning August 1.

The move, revealed through posts on Trump’s Truth Social platform, marks the return of his proposed reciprocal tariff policy aimed at addressing trade imbalances.

In the posts, Trump shared what appeared to be form letters addressed to Japanese Prime Minister Ishiba Shigeru and South Korean President Lee Jae-myung.

The letters outlined the imposition of the new tariff rates and signaled that they are part of a broader package of tariff measures expected to be implemented throughout the week. Trump indicated that up to 15 similar letters would be sent to leaders of other countries by Wednesday, the deadline for reinstating the tariff levels he had originally announced in April.

The letters clarified that the 25% tariffs are in addition to any product-specific duties on strategic sectors. They also included a warning against transshipping—where goods are routed through third countries to avoid tariffs—stating: “Goods transshipped to evade a higher Tariff will be subject to that higher Tariff.”

Trump justified the decision as necessary to address the long-standing trade deficits the U.S. runs with both nations. “These tariffs are to correct imbalances,” the letters stated.

According to data from the Office of the United States Trade Representative, the U.S. had a $68.5 billion goods trade deficit with Japan and a $66 billion deficit with South Korea in 2024.

Trump has long criticized trade deficits and promoted tariffs as a tool to protect American industry, often arguing that the U.S. is being exploited by trading partners. However, many economists dispute the idea that trade deficits are inherently harmful, and question the effectiveness of unilateral tariffs in reducing them.