Trump Slaps 25% Tariffs on Japan, South Korea; Warns of Retaliation as Global Trade Tensions Escalate

In a sweeping action that rekindles global trade tensions, U.S. President Donald Trump launched 25% tariffs on all things imported from Japan and South Korea on August 1. The move, launched in a series of letters posted on his Truth Social site, also launches new tariffs ranging from 25% to 40% for imports from 12 other nations, such as Malaysia, Indonesia, and South Africa.

Trump billed the tariffs as a gesture toward "reciprocal trade" and as a policy for strengthening domestic manufacturing. The letters warned foreign leaders that retaliatory tariffs would get an equal or higher duty from the U.S. "If for any reason you do decide to raise your Tariffs, then, whatever you do, will be put on the 25% that we charge," Trump wrote.

The announcement sent shockwaves through global markets. Wall Street fell sharply, with the Dow Jones and Nasdaq dropping nearly 1% each. Experts fear the tariffs will disrupt supply chains and slow economic growth, particularly in sectors like semiconductors and auto manufacturing.

Despite aggressive tone, White House continued to say negotiations are still ongoing. The tariffs become effective in August, with the trade partners having a narrow window to ink new deals. Trump's move was amid wider geopolitical shifts, such as deepened BRICS coordination, which Trump labeled as "anti-American."

While Japan and South Korea have been U.S. allies for years, the tariffs are a significant strain on economic relations. Trade analysts and industry statistics warn that the impact can be long-lasting if diplomatic remedies are not reached in a timely manner.