Trump to impose a 25% tariff on goods from Japan and South Korea

Donald Trump rolled out plans to escalate his trade wars on Monday, though tariff hikes on imports from key nations have been delayed until next month, adding to the widespread confusion over his contentious economic approach.

The U.S. president declared that countries including Japan, South Korea, and South Africa will be hit with tariffs as high as 40% starting August 1. However, no increases will take effect this Wednesday, as he extended an earlier pause.

Sharing copies of letters to world leaders on social media, Trump confirmed the following:

• A 25% U.S. tariff on imports from Japan, South Korea, Malaysia, and Kazakhstan.
• A 30% tariff on goods from South Africa.
• A 40% tariff targeting Laos and Myanmar.

The White House also announced Trump would sign an executive order on Monday to prolong the 90-day pause on the so-called “reciprocal” tariffs that were first introduced in April—effectively postponing the trade talks deadline to August 1.

Press secretary Karoline Leavitt declined to identify which other countries would be receiving letters, though she told reporters that 14 would be contacted on Monday, with more expected later in the week.

Asked why Japan and South Korea were prioritized, Leavitt responded: “It’s the president’s prerogative, and those are the countries he chose to be on a separate track.”

She noted that the president was “close” to finalizing other agreements but “wants to ensure these are the best deals possible.”

Although Trump officials had previously stated that deals with several key economies would be finalized by July 9, they now say an extension is needed to continue negotiations.

The letters to Japan and South Korea were nearly identical, stating that tariffs would not be imposed if the countries “decide to build or manufacture product within the United States.”

Trump also warned that any retaliatory tariffs would be matched. “If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto that 25% we charge,” he wrote.

In a post on Truth Social, Trump added that countries working closely with the BRICS nations (Brazil, Russia, India, China, and South Africa) could face an additional 10% tariff, after BRICS leaders released a joint statement Sunday criticizing the rise in unilateral tariff actions.

Trump had originally announced the reciprocal tariffs in April on what the White House dubbed “liberation day,” with some countries targeted at rates as high as 50%.

To date, the U.S. has reached agreements with the UK, China, and Vietnam. According to economic adviser Bessent, negotiations remain ongoing with over a dozen more countries.

The revised August 1 deadline offers a short reprieve for nations still without a deal but also introduces fresh uncertainty for U.S. importers due to a lack of detailed tariff guidance.

As the previous deadline approached, Trump officials have been scrambling to finalize deals.

European Union ambassadors were briefed Monday on a draft framework that appears to have been reached over the weekend with the Trump administration. The EU reportedly will not be among those receiving letters regarding new tariffs.

Negotiations with Japan have reached a standstill despite early optimism. Trump remarked Friday that it’s “much easier to send a letter” and called the offers “take it or leave it.”

On Wall Street, the S&P 500 dropped 1% after Trump published the initial letters.

While the U.S. stock market has largely rebounded from earlier trade war turbulence, the dollar remains weak. After months of tariff-related volatility, the greenback has fallen 10.8% since January—marking its worst first-half performance in over 50 years.

In the UK, steelmakers remain on edge amid uncertainty about whether they’ll be caught in the crosshairs of the U.S. tariffs. The British government says it's still working to secure an agreement that would shield the sector from the trade war fallout.

The U.S. has imposed a 50% tariff on foreign steel and aluminum, though the UK negotiated a temporary reduction to 25% and hopes to eliminate it entirely. A final agreement has yet to be reached.

On Monday, Downing Street stopped short of expressing confidence it could secure a full exemption before Trump’s deadline. A spokesperson said: “Our work with the U.S. continues to get this deal implemented as soon as possible.”