In a major policy move, U.S. President Donald Trump has announced the imposition of a 25% import tariff on goods from Japan and South Korea, along with new tariffs on several other countries. The tariffs will come into effect from August 1 and are part of what Trump described as a push to "protect American jobs and industries."
Alongside Japan and South Korea, countries such as Malaysia, Kazakhstan, South Africa, Laos, and Myanmar will also face new tariff rates. Specifically, Malaysia will face a 25% tariff, Kazakhstan 25%, South Africa 30%, and both Laos and Myanmar 40%.
Trump made the announcement through open letters posted on his social media platform, Truth Social. In letters addressed to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung, Trump issued a clear warning: “Your tax increase will be added to our 25% tax.” He further cautioned that any retaliatory action from the affected countries would be met with even tougher U.S. measures.
The decision is expected to have far-reaching consequences for global trade, particularly affecting the automobile and electronics sectors, where Japan and South Korea are key players. Economists warn that the move could lead to rising prices and strained diplomatic relations.
Despite the backlash, Trump defended the tariffs as a strategic effort to boost domestic manufacturing and generate revenue to fund upcoming tax breaks. The administration stated that it is adopting a country-specific trade strategy, tailored to address what it views as unfair trade practices.