Donald Trump sends tariff letters to Japan, Korea with a warning

US President Donald Trump on Monday announced 25 per cent tariffs on imports from South Korea and Japan, stressing that the rates are "far less" than what is needed to eliminate the "trade deficit" between the US and them. He said that the US is ready to continue trade despite having a significant Trade Deficit with them, but it will be "more fair and balanced" trade.

The tariff slabs will come into effect from August 1, Trump announced on his Truth Social platform, rolling out letters with Korea and Japan being among the first ones to receive them.

"Starting on August 1, 2025, we will charge Japan/Korea a Tariff of only 25% on any and all Japanese products sent into the United States, separate from all Sectoral Tariffs. Goods transshipped to evade a higher Tariff will be subject to that higher Tariff. Please understand that the 25% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country," Trump said in the separate letters directed to both East Asian countries.

Trump shared the screengrabs of the letters he dispatched to Japanese Prime Minister Ishiba Shigeru and South Korean President Lee Jae-myung apprising them of his move to impose the new set of tariff rates.

Trump's tariff announcement was clubbed with a warning that if these countries intended to further raise duties on the US, the same rates would be charged on top of the 25 per cent tariffs already announced.

"Please understand that these



Tariffs are necessary to correct the many years of Tariff, and Non Tariff, Policies and Trade Barriers, causing these unsustainable Trade Deficits against the United States. This Deficit is a major threat to our Economy and, indeed, our National Security!" Trump added.

However, Trump assured his Asian trading partners that if they decided to manufacture the products within the US, they would be exempted from all tariffs.

"As you are aware, there will be no Tariff if Japan, or companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely - In other words, in a matter of weeks," the letters further read.

This came hours after Trump said that the US would begin sending official letters, described as final and non-negotiable, outlining new tariff rules and trade deal terms to multiple countries.

This marks a shift from traditional diplomatic negotiations to a more direct, unilateral approach. These letters are being sent just two days before the July 9 expiry of a 90-day tariff suspension first announced in April.

That earlier proposal included a base 10 per cent tariff on most imports, with the possibility of raising it up to 70 per cent for specific countries.

Trump had previously called these proposals “take it or leave it” offers, aiming to speed up talks and push ahead with the planned tariff system.