President Trump on Monday said 25% tariffs on goods from South Korea and Japan will go into effect on August 1.
Mr. Trump posted two nearly identical letters to each nation’s leader on his Truth Social media platform Monday, indicating that the levies will take effect on the first day of August. A 90-day freeze on country-specific U.S. tariffs on dozens of nations, including Japan and South Korea, is scheduled to expire on July 9.
Mr. Trump said in each memo that the letter “demonstrates the strength and commitment of our Trading Relationship,” and that “we invite you to participate in the extraordinary Economy of the United States.”
The 25% levies apply to “any and all Japanese products sent into the United States, separate from all Sectoral Tariffs,” Mr. Trump added in his letter to Japanese Prime Minister Shigeru Ishiba. He also warned that if either South Korea or Japan raises tariffs on the U.S., the Trump administration will reciprocate by adding that figure to the 25% baseline rate.
The 25% tariff is in line with the so-called “reciprocal” rates Mr. Trump said South Korea and Japan would each face when he unveiled country-specific duties on April 2. At the time, the Trump administration said it would impose tariffs of 24% and 25% on imports from Japan and South Korea, respectively.
Trade policy expert Barry Appleton, co-director of the Center for International Law at New York Law School, told CBS MoneyWatch that Monday’s announcements “are simply indications that he is making them pay full admission price to access the U.S. market.”
“At 25%, it is possible, but challenging, to trade with Japan and Korea. This rate was carefully set at the higher side of the spectrum. In essence trade with the U.S. now is a pay to play proposition for Japan, Korea and likely others to come,” he said.
Appleton added that the country-specific rates announced Monday do note bode well for other nations looking to strike deals with the U.S., including EU countries, Canada and Switzerland.
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