Trump Announces 25% Tariffs on Japan and South Korea, Escalating Trade Tensions

Former U.S. President Donald Trump has reignited global trade tensions by announcing a 25% tariff on imports from Japan and South Korea, effective August 1. The move was communicated through formal letters addressed to the leaders of both nations and posted on Trump’s Truth Social platform, marking a significant escalation in his administration’s ongoing trade strategy.

In the letters, Trump criticized what he described as “persistent trade deficits” and “non-reciprocal” trade practices by the two Asian economic powerhouses. “Our relationship has been, unfortunately, far from reciprocal,” he wrote, warning that any retaliatory tariffs would be met with equivalent increases on U.S. duties.

The tariffs are part of a broader campaign to pressure U.S. trading partners into renegotiating trade terms. Trump had initially proposed reciprocal tariffs in April, capping them at 10% to allow for negotiations. With limited progress—only the U.K. and Vietnam have reached agreements—the new 25% rate signals a hardening stance.

The announcement triggered immediate market reactions. U.S. stocks dipped, with the S&P 500 falling nearly 1%, while shares of Japanese automakers Toyota and Honda dropped over 4% and 3.8% respectively. The dollar surged against both the yen and the won, reflecting investor unease.

South Korea and Japan have yet to issue formal responses, though South Korean