Washington, DC (BN24) – President Donald Trump said Monday the United States will impose sweeping 25% tariffs on imports from Japan and South Korea starting August 1, escalating his aggressive trade agenda and jolting financial markets already on edge over months of tariff threats.
In letters addressed to the leaders of Japan and South Korea—and posted on his Truth Social platform—Trump warned that any retaliatory tariff hikes would trigger even steeper U.S. levies. “If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge,” Trump wrote.
The move marks the first in a series of 12 letters the White House plans to issue to U.S. trading partners in coming days. Later Monday, Trump added that tariffs would also be imposed on Malaysia and Kazakhstan at 25%, South Africa at 30%, and Laos and Myanmar at 40%.
The new rate for Japan is one percentage point higher than the figure announced in April, while South Korea’s rate remains unchanged. Trump had temporarily capped the tariffs at 10% in the spring to allow time for negotiations, but only Britain and Vietnam have struck last-minute trade deals to avoid the higher duties.
White House spokeswoman Karoline Leavitt confirmed the executive order delaying the July 9 implementation deadline to August 1, giving countries three more weeks to clinch agreements. She declined to identify the remaining countries but said “there will be additional letters in the coming days” and that “we are close” to sealing several new deals.
Neither the Japanese nor South Korean embassies in Washington immediately commented.
The announcement sent U.S. stocks tumbling, with the S&P 500 dropping nearly 1% in its biggest decline in three weeks. Shares of Japanese automakers were hit especially hard, as Toyota fell 4.1% and Honda slid 3.8%. The dollar gained against the yen and the Korean won amid growing uncertainty about how the tariffs will reverberate through Asia’s export economies.
U.S. Treasury Secretary Scott Bessent said he expected a flurry of trade activity within 48 hours, as countries scrambled to avoid the tariffs. “My mailbox was full last night with a lot of new offers, a lot of new proposals,” Bessent told CNBC, predicting a “busy couple of days.”
Europe, meanwhile, continued efforts to head off its own tariff hikes. European Commission President Ursula von der Leyen held talks with Trump over the weekend that officials described as a “good exchange,” though it was unclear whether the EU’s efforts would yield an agreement before the deadline.
Without a deal, U.S. tariffs on most EU imports would jump from 10% to 20%. Trump has also threatened to slap a 17% duty on European food and agricultural goods.
Trump’s move underscores his willingness to challenge even longtime allies with steep trade penalties if they fail to meet his demands. It also follows his warning that any BRICS nation siding with “anti-American” policies would face an additional 10% tariff.
The BRICS bloc—comprising Brazil, Russia, India, China, South Africa, and recent additions Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates—has been gathering in Brazil this week to emphasize multipolar cooperation. Kremlin spokesman Dmitry Peskov said Monday that BRICS was never intended to target the United States, calling it a “group of countries that share common approaches and a common world view.”
Across Europe, officials weighed whether to push for a limited trade pact or stand firm against Trump’s escalating demands. Germany’s government said Chancellor Friedrich Merz held weekend talks with French and Italian leaders to coordinate strategy, with Berlin warning that the country’s industries remain highly vulnerable to new tariffs.
Automaker Mercedes-Benz said Monday that its second-quarter vehicle sales dropped 9%, blaming the tariff turbulence for disruptions.
With the August 1 deadline looming, many countries now face an urgent choice: capitulate to Trump’s tariff threats or brace for a new wave of trade shocks.
