U.S. President Donald Trump declared plans to impose 25% tariffs on goods from Japan and the Republic of Korea (ROK) starting August 1, escalating trade tensions in Asia. The announcement, made via social media on Monday, marks a significant shift in U.S. trade policy toward two of its key Asian allies.
The move targets automotive and technology sectors critical to both economies. Analysts warn this could disrupt supply chains and raise costs for businesses reliant on components from Japanese and South Korean manufacturers. The ROK’s semiconductor industry and Japan’s auto exports are expected to face immediate pressure.
Trade experts note the decision follows months of strained negotiations over market access and perceived imbalances. While Trump framed the tariffs as "protecting American jobs," critics argue they risk destabilizing Asia-Pacific economic cooperation. The announcement comes amid broader U.S.-China trade recalibrations, though the Chinese mainland was not directly mentioned in this latest measure.
Market reactions were swift, with Tokyo and Seoul stock indexes dipping overnight. Business leaders in both countries are urging diplomatic resolution, while the White House has yet to release official documentation detailing tariff exemptions or phase-in periods.
