Trump Announces August Tariffs on Japan, South Korea, Asia Markets Fall

President Donald Trump announced higher tariffs on key Asian trading partners including Japan, South Korea, Malaysia, Indonesia, Bangladesh, Thailand, Cambodia, Laos, and Myanmar, reigniting market concerns about trade tensions. The tariffs, set to take effect starting August 1, range from 25% to 40% and were communicated via letters from Trump to the leaders of affected countries. This move reversed a previous 90-day pause on tariff hikes and dashed hopes for imminent trade deals promised by the administration. Asian stock markets, including Tokyo and Sydney, faced immediate pressure, with futures declining alongside drops in US equities and a strengthening US dollar. The White House indicated that additional tariff notification letters would be sent to other countries, while market analysts warned investors to expect volatile headline risks. The tariffs reflect Trump’s stance that trading with the US comes at a premium due to the country's dominant economic position, despite widespread market unease and stalled trade negotiations.