President Trump on Monday said the U.S will impose 25% tariffs on goods from South Korea and Japan by August 1, while also threatening to hit five other nations with import duties of up to 40% by next month.
Mr. Trump posted two nearly identical letters, addressed to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung, on his Truth Social media platform outlining the new tariffs. 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 on Monday afternoon also announced separate tariffs on an additional five trade partners. Myanmar and Laos both face a 40% tariff rate; South Africa imports will be subject to 30% duties; and goods from both Malaysia and Kazakhstan will be taxed at 25%, Mr. Trump said in letters posted on Truth Social. Those tariffs are scheduled to kick in August 1 as well.
White House press secretary Karoline Leavitt said during a press briefing Monday that Mr. Trump is set to sign an executive order extending the July 9 tariff freeze. The order delays the deadline to “August 1 so the reciprocal tariff rate, or these new rates that will be provided in this correspondence to these foreign leaders, will be going out the door within the next month,” Leavitt said.
Leavitt added that Mr. Trump plans to send tariff letters to “approximately 12 other countries” informing them of new U.S. levies on their goods. She did not indicate when the notices will be sent out, but said Mr. Trump will post them on Truth Social “so you can enjoy them yourself.”
Trump is also expected to announce more deals with U.S. trade partners before the beginning of August, she said.
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 Japan’s 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.
25% tariff would bog down trade
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 not bode well for other nations looking to strike deals with the U.S., including EU countries, Canada and Switzerland.
Economists warn that wide-ranging U.S. tariffs on trading partners could spark another bout of inflation and hinder economic growth, while global financial markets have heaved at the prospect of significantly higher trading costs.
Trump administration officials have said stiff U.S. tariffs can ensure fair global trade while also boosting the American manufacturing sector.
Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.
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