Trump to impose 25% tariffs on Japan and South Korea from August 1 

In his letter to Japanese Prime Minister Ishiba Shigeru, Trump wrote, “We have had years to discuss our Trading Relationship with Japan, and have concluded that we must move away from these longterm, and very persistent, Trade Deficits.”

He said the imbalance was caused by Japan’s “Tariff, and Non Tariff, Policies and Trade Barriers,” which he claimed had made the trading relationship “far from Reciprocal.”

Trump added that from 1 August, “we will charge Japan a Tariff of only 25% on any and all Japanese products sent into the United States, separate from all Sectoral Tariffs.”

He also warned that goods transshipped to avoid higher tariffs would still face the same rate. However, Trump said the tariffs would not apply if Japanese companies built or manufactured products within the United States.

“There will be no Tariff if Japan, or companies within your Country, decide to build or manufacture product within the United States,” he wrote.

“We will do everything possible to get approvals quickly, professionally, and routinely – in other words, in a matter of weeks.” A similar letter was sent to South Korean President Lee Jae Myung.

The BBC said these letters were the first in a series expected from the Trump administration, signalling a broader shift in US trade policy with its major partners.

Reuters reported that financial markets reacted quickly to the announcement. The US dollar rose against the Japanese yen, trading up 0.95% at 145.95. Meanwhile, major US stock indexes moved lower following the tariff news.

The White House has not yet provided further details about which goods will be affected or the reasons for the new tariffs. Trump has previously said he wants to reduce trade imbalances and protect American industries.