- Trump announces 25% tariffs on Japan and South Korea concerning auto trade.
- Tariffs set to be enforced on August 1st.
- Potential implications for global trade and economic relations.
President Trump announced a 25% tariff imposition on Japan and South Korea starting August 1st, citing dissatisfaction with current auto trade practices.
The tariff move by President Trump targets unequal auto trade, urging Japan to purchase more U.S. oil. This could strain relations and impact global economic activities adversely.
U.S. to Enforce 25% Auto Tariffs from August 1st
President Trump plans to impose a 25% tariff on automobiles from Japan and South Korea, starting August 1st. The announcement was made after public statements expressing concerns over perceived inequities in current trade terms. Donald Trump labeled Japan as “tough” and “spoiled” in negotiations, according to statements heard by media reporters.
As of now, South Korean officials have not provided similar public remarks. Global markets remain watchful for further diplomatic fallout and economic repercussions. Federal Reserve Chair, Jerome Powell mentioned that existing tariff hikes could exert pressure on economic activity.
Japan, through negotiator Ryosei Akazawa, has voiced opposition stating, “Auto tariffs are not something we can accept… negotiations remained in a fog.”
Previous U.S. Tariffs on Japan and Cryptocurrency Insights
Did you know? The U.S. has previously imposed similar tariffs on Japan, invoking Section 232 protections, but a ceasefire was established in 2025, which appears to be lapsing now.
According to CoinMarketCap, Ethereum (ETH) is trading at $2,527.74 with a market capitalization of $305.14 billion as of July 7, 2025. Despite recent geopolitical tensions, ETH’s 90-day performance shows a significant 69.07% upsurge. The 24-hour trading volume stands at $16.14 billion, marking an increase of 63.37%.
Coincu research team suggests the announced tariffs may lead investors toward digital assets as a hedge against currency and equity market uncertainties. Historical trends in similar scenarios showed temporary shocks, yet no persistent negative influence on the overall cryptocurrency sphere.
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Source: https://coincu.com/347323-trump-tariffs-japan-south-korea/