Trump slaps new reciprocal prices on imports from Japan, South Korea, gives the two countries a deadline – Redstate
President Donald Trump announced on Monday that his administration would impose “reciprocal” prices of 25% on imports from American allies in Japan and South Korea, citing continuous commercial imbalances with two closest American allies and the most important business partners.
In almost identical letters, Trump wrote in his usual style:
[W]We decided to move forward with you, but only with a more balanced and fair trade. We invite you to participate in the extraordinary economy of the United States, the number one market in the world, by far.
Trump also warned the two countries not to fight back by increasing their own import taxes on American products:
Please understand that the 25% is much lower than what is necessary to eliminate the disparity of the trade deficit that we have with your country. If, for any reason, you decide to increase your prices, then, whatever the number you choose to raise them, will be added to the 25% that we will charge.
Trump’s announcement has led to a midday collapse in the trading of actionsWith the industrial average of Dow Jones by lowering 526 points at 12 h 22 hne, the NASDAQ composite lowering an additional one percent and the S&P 500 sliding by 0.9%.
If you have had trouble following the events with regard to the prices since the start of Trump’s second term, Here is a little recall::
Trump first revealed radical “reciprocal” rates for global business partners after applying 10% of rights worldwide on April 2.
Seven days later, he declared a 90 -day break on these rates to continue negotiations before imposing the samples, almost correlated by the Council of Economic Advisors to speak of half of the current American trade deficits with each country.
Until now, with only the United Kingdom, China and Vietnam after negotiating agreements, Trump threatened on Friday to reach up to 70% with certain nations that hold tariff agreements.
Pending any last -minute trade agreement, import taxes will be slapped on Tuesday on Cambodia (49%), Laos (48%), Madagascar (47%), Sri Lanka (44%), Bangladesh (37%), Indonesia (32%) and Pakistan (29%).
The British trade agreement, if finalized, will retain basic tariffs of 10% on most goods, while exempting most British manufacturing cars, steel and aluminum of 25% samples which had been announced separately.
The American-Chinese arrangement is still being food before August 10 to avoid 145% snapback rates on the American side and 125% on the Chinese side.
The Vietnam agreement includes a basic tariff rate of 20% as well as 40% on “transjudite” goods from China or other countries.
USMCA’s trade agreement for Trump’s first mandate, the goods from Canada and Mexico have escaped higher tasks, although 25% prices were added to items that were not previously part of this agreement.
Regarding new prices on imports from Japan and South Korea, Trump told journalists on Friday:
They will start paying on August 1. Money will start in the United States on August 1 in just about all cases.
Also check: Crunch time: Trump to send “ to take or leave ” pricing letters on Monday in a dozen countries
“ Dear Mr. Japan ”: Trump says that he will send letters to the countries by making them known their new prices
The white house press secretary Karoline Leavitt said at her daily conference that letters similar to around five other countries are said to be published on Monday.
Indeed, after the initial announcement concerning Japan and South Korea, additional letters went to Malaysia, Kazakhstan, South Africa, Myanmar and Laos.
🚨 Just in: President Trump sends letters establishing prices for Malaysia and several other countries
🔴 Malaysia: 25%
🔴 Kazakhstan: 25%
🔴 South Africa: 30%
🔴 Myanmar: 40%
🔴 Laos: 40%– Eric Daugherty (@ericldaugh) July 7, 2025
It should be noted that the prices announced in Trump’s letters are not negotiated regulations. Leavitt said Trump establishes the prices itself, creating “tailor-made commercial plans for each country on this planet, and this is what this administration continues to focus”.
As was the case with the previous prices announced by President Trump, it will be interesting to see how the allies of Japan and South Korea – and others – react to the “Thank you the president for your attention to this question!” mail.
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