American President Donald Trump announced on Monday that the United States will impose a 25% tariff on imports from Japan and South Korea starting on August 1.
In a letter addressed to Japanese Prime Minister Shigeru Ishiba, Trump stated that the trade relationship between the two countries „has unfortunately been far from reciprocal,” Reuters reports.
A similar letter was also sent to the South Korean government. Both were fully published by Trump on his Truth Social platform.
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Regarding South Korea, the 25% tariff is the same as the one Trump announced at the end of April, before granting a postponement to allow for negotiations.
For Japan, on the other hand, there is a slight increase, from 24% to 25%.
The letters also highlight that if products are labeled 'Japan' or 'South Korea' but actually come from elsewhere, a higher tariff, unspecified, will be applied.
The announcement affected American financial markets, which experienced declines, while shares of Japanese auto companies listed in the US were among the hardest hit: Toyota Motor fell by 4.1%, and Honda Motor by 3.8%.
Treasury Secretary Scott Bessent stated that he is set to announce "several trade agreements" in the next 48 hours.