USA

Trump Raises Tariffs – Japan and South Korea Hit Hard

Japanese and South Korean goods face new tariff barriers – EU gets a milder deal.

Mikkel Preisler
By Mikkel Preisler 7. July 2025

U.S. President Donald Trump has taken yet another aggressive step in his trade battles, announcing new 25% tariffs on imports from Japan and South Korea. The Trump administration has sent formal letters directly to Japanese Prime Minister Ishiba Shigeru and South Korean President Lee Jae Myung, outlining the decision and demanding swift renegotiation of existing trade agreements.

Trump’s rationale for this hardline move is clear: the United States wants to eliminate its longstanding trade deficits with the two Asian nations. “Unfortunately, our trade relationship has been far from reciprocal,” reads the letter, which Trump personally shared on his platform, Truth Social.

New Tariff Rules With Far-Reaching Implications

The 25% tariffs are set to take effect on August 1, 2025, covering all goods imported from Japan and South Korea. Special provisions will also target attempts to reroute goods through third countries to evade the new levies. The administration says this is a firm stand against any potential circumvention.

Still, Trump has offered a potential escape route: if Japanese and South Korean companies move production to U.S. soil, they will be exempt from the tariffs. The president claims his administration will do everything possible to fast-track approvals for such investments.

More Countries in the Crosshairs

The White House also revealed that 12 more countries will soon receive similar letters from Trump, warning of possible tariffs and urging new trade agreements. The stated goal is to craft deals that “put American workers and businesses first.”

Europe, for now, has avoided the harshest measures. EU leaders recently received details of a draft agreement with Washington that softens the proposed tariff increases. However, a general 10% tariff on European goods will remain in place until final negotiations are completed.

Global Trade Relations on the Brink

Trump’s latest tariff push signals a new phase in U.S. trade policy, one in which even traditional allies like Japan and South Korea face tough economic pressure. While the EU has dodged the worst so far, it remains under strain to reach a comprehensive deal.

All eyes are now on Tokyo and Seoul as officials there prepare their responses. The stakes are high: the tariffs could hit exporters hard and send shockwaves through global supply chains.

Our team may have used AI to assist in the creation of this content, which has been reviewed by our editors.