Washington, July 8 (V7N) — U.S. President Donald Trump has announced a 25% tariff on nearly all imports from Japan and South Korea, dramatically escalating trade tensions with two of America’s closest allies.
 
The announcement came in the form of official letters sent to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung, posted publicly via Trump’s social media platform. In the letters, Trump accused both countries of “unfair trade practices,” citing long-standing trade deficits and what he called a “lack of reciprocal cooperation.”
 
The new tariffs are set to take effect on August 1, 2025, and come in addition to earlier tariffs imposed in April under the so-called “Liberation Day” policy. Trump warned that any retaliatory tariffs by the two nations would result in an automatic increase of the imposed 25% rate.
 
According to White House sources, more countries will receive similar letters this week as Trump’s team pushes for rapid bilateral deals before the deadline. So far, only the United Kingdom and Vietnam have finalized new trade agreements with the U.S.
 
The announcement has already shaken financial markets. The Dow Jones Industrial Average dropped over 500 points following the news, while stock prices for Japanese automakers such as Toyota and Honda fell by up to 7.5%.
 
Economists and international trade analysts have warned the move could strain diplomatic relations, increase consumer costs, and destabilize global supply chains. Officials in Tokyo and Seoul have yet to issue formal responses but are reportedly weighing options for countermeasures.
 
As the August deadline approaches, pressure is mounting on U.S. allies to comply with Washington’s demands or risk further economic fallout.
 
END/WD/AJ/