President Donald Trump on Monday announced the U.S. will impose 25% tariffs on goods imported from Japan and South Korea.
Trump shared letters addressed to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung in posts on Truth Social.
The new levies will take effect on Aug. 1. If either Japan or South Korea raise tariffs in retaliation, Trump said in his letters that the U.S. tariffs will increase by an equal amount.
Stocks reacted to the announcement, with the Dow Jones Industrial Average falling more than 500 points, or 1.1%, while the S&P 500 and the Nasdaq Composite each dropped 0.9%.
Trump’s letters said it is a “Great Honor to send you this letter in that it demonstrates the strength and commitment of our Trading Relationship,” and that the U.S. has agreed to continue to work with Japan and South Korea “despite having a significant Trade Deficit” with each country.
“Nevertheless, we have decided to move forward with you, but only with more balanced, and fair, TRADE. Therefore, we invite you to participate in the extraordinary Economy of the United States, the Number One Market in the World, by far,” Trump wrote.
In April, Trump announced a “reciprocal” tariff policy under which U.S. tariffs on goods imported from foreign countries would be based on the size of America’s bilateral trade deficit with those countries.
Under the reciprocal tariffs announced at the so-called “Liberation Day” event, imports from Japan would face a 24% tariff while goods from South Korea would have a 24% tariff applied to them.
This is a developing story. Please check back for updates.
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