In a bold move aimed at reshaping longstanding trade dynamics, President Donald Trump has announced a 25% tariff on all goods imported into the United States from Japan and South Korea.
The decision, effective August 1, 2025, was detailed in formal letters sent to Japanese Prime Minister Ishiba Shigeru and South Korean President Lee Jae-myung.
Citing persistent and “very significant” trade deficits with both countries, the letters emphasized that while the U.S. values its relationships with Japan and South Korea, it can no longer tolerate what it sees as one-sided trade practices. The tariffs apply to all products from both nations and are separate from existing sectoral tariffs.
“Our relationship has been, unfortunately, far from reciprocal,” the letters read. President Trump asserted that the new duties are essential to correct imbalances caused by long-term tariffs, non-tariff barriers, and other restrictive policies that have led to “unsustainable Trade Deficits” with the U.S.
Notably, the letters make clear that the 25% rate is just a starting point. Any retaliatory increase in tariffs by Japan or South Korea will be met with an equivalent additional increase from the United States.
Trump offered an olive branch, noting that companies from Japan and Korea can avoid the new tariff altogether if they manufacture within the U.S. “We will do everything possible to get approvals quickly, professionally, and routinely,” the letters added, signaling a desire to maintain economic ties under new terms.
The letters describe the trade deficit as a threat not only to the U.S. economy but to its national security, underscoring the administration’s commitment to rebalancing trade policy ahead of the 2026 election season.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/trump-administration-slaps-25-tariffs-on-japan-and-south-korea-over-trade-imbalance/