US Imposes 25% Tariffs on Japan, South Korea from August 1

President Donald Trump announced new 25% tariffs on goods imported from Japan and South Korea, set to take effect on August 1, citing persistent trade imbalances with these key U.S. allies. Trump communicated the tariffs through letters posted on his social media platform, warning both countries against retaliatory tariff increases, threatening further U.S. tariff hikes if they do so. The tariffs come amid broader U.S. trade policy efforts, with 12 other countries receiving tariff rate notifications and ongoing negotiations aimed at addressing decades of perceived bad trade practices. The move has increased market volatility, with the Japanese yen and South Korean won weakening, and U.S. stock indices reacting negatively. While Trump framed the tariffs as necessary to restore domestic manufacturing and economic strength, Japan and South Korea have expressed intentions to continue trade talks with the U.S. in hopes of achieving mutually beneficial agreements. The situation remains fluid, as the U.S. administration continues to negotiate and adjust tariffs across multiple countries.