US Imposes Tariffs on Japan, South Korea

The White House today announced its decision to impose a 25% tariff on all products imported from South Korea and Japan, effective Aug. 1, 2025. The move comes as the United States seeks to address what it describes as "significant" and "persistent" trade deficits with both nations.

In separate letters addressed to South Korean President Lee Jae-myung and Japanese Prime Minister Ishiba Shigeru, the White House conveyed that while trade relationships with both countries demonstrate strength and commitment, they have not been "reciprocal." The letters explicitly attribute these trade imbalances to "Tariff, Non Tariff, Policies and Trade Barriers" enacted by Korea and Japan.

The 25% tariff will apply to "all Korean products" and "all Japanese products" entering the United States, with an additional warning that goods transshipped through other countries to evade the higher tariff will also be subject to the increased duty. The White House emphasized that the 25% figure is "far less than what is needed to eliminate the trade deficit disparity".

The US administration is urging companies from Korea and Japan to consider building or manufacturing products within the United States. To facilitate this, the White House pledged to "do everything possible to get approvals quickly, professionally, and routinely" for such initiatives.

The letters underscore the US’ position that these tariffs are "necessary to correct the many years" of perceived unfair trade practices. The White House concluded by stating that the persistent trade deficits pose a "major threat" to the US economy and, indeed, to its national security.

This latest tariff announcement closely follows President Trump's signing of his "Big Beautiful Bill" into law on July 4th. This comprehensive package of taxes and incentives is designed to further solidify his administration's agenda, particularly concerning issues deemed vital to "national security".

July 9th, will mark the expiration of a 90-day pause on initial tariffs imposed earlier in his term. Prior to the bill's signing, Trump had urged nations to engage in negotiations with his administration before this deadline, offering an opportunity to "balance" their trade relations with the United States. Through these tariff impositions, President Trump aims to leverage the United States' position as a leading global consumer market, seeking to attract production chains back to the US in line with his "Make America Great Again" initiative.