Trump Imposes 25% Tariffs on Japan, South Korea Starting August

President Donald Trump announced 25 percent tariffs on goods imported from Japan and South Korea, effective August 1, citing persistent trade imbalances and framing the move as necessary to protect the U.S. economy and national security. The tariffs, communicated through letters posted on Truth Social and addressed to the leaders of both countries, warn of further increases if Japan or South Korea retaliate with higher tariffs of their own. This decision has sparked concerns about escalating trade tensions with key U.S. allies, potential economic slowdown, and market volatility, with the S&P 500 dropping nearly 1 percent and yields on 10-year U.S. Treasuries rising. Market analysts note ongoing uncertainty and volatility, emphasizing that consumers may bear much of the tariff costs and that U.S. economic growth could slow, potentially leading to lower interest rates later. The tariffs are part of a broader strategy by Trump to counter trade deficits and strengthen domestic manufacturing, while also warning that other countries like India and the European Union could face similar tariffs if trade negotiations fail. The announcement also caused a sharp decline in Bitcoin prices, reflecting investor concerns about escalating global trade conflicts.