Trump Announces 25% Tariffs on Japan and South Korea Starting August 1

US President Donald Trump announced on Monday the imposition of 25% tariffs on Japan and South Korea. This move comes as Trump's first step towards reaching a deal with trading partners before a deadline. In letters to the Japanese and South Korean leaders, Trump cited the need for reciprocal trading relationships. He warned against retaliatory tariffs, stating that any increase in tariffs by the countries would be added to the 25% charged by the US. However, Trump expressed willingness to lower levies if Japan and South Korea adjusted their trade policies.

Trump had previously postponed imposing harsh levies in April but now plans to reinstate them starting August 1. Treasury Secretary Scott Bessent mentioned that this delay allows for further negotiations. CNBC-TV18 reported that India and the US are nearing a decision on a mini-trade deal, with talks for a full Bilateral Trade Agreement expected to begin after July 9.

Although the Trump administration aims to secure multiple trade deals by early July, progress has been slow. Deals have been reached only with Britain and Vietnam, while discussions with China have led to temporary tariff reductions. Bessent mentioned plans to meet with Chinese officials in the coming weeks. The pause on tariffs between the US and China is set to end in mid-August.

Trump announced on social media his intention to send tariff letters to various countries and threatened a 10% tariff on nations supporting the BRICS group. This move follows criticism of his trade policies at a recent summit.

According to the source: Moneycontrol.