U.S. President Donald Trump on Monday took a bold step by announcing heavy tariffs on imports from South Korea, Japan, Myanmar, Laos, South Africa, Kazakhstan, and Malaysia. Trump unveiled this decision via several social media posts, calling it a critical move towards reducing the trade deficit between the US and these nations. However, the ultimatum with 'take it or leave it' attached was sent to these countries to accelerate talks and advance the tariff system.
He emphasized that these tariff rates are considerably lower than what would be required to completely eliminate the trade deficit. Trump also made it clear that the US is willing to continue trade with these nations, provided it is more fair and balanced.
In a statement, Trump expressed, 'We have been facing significant trade deficits with South Korea and Japan for a long time. These tariffs are a starting point to address this imbalance, ensuring American businesses and workers get fair opportunities.'
President Trump first targeted Japan and South Korea, announcing a 25% tariff on their products. Subsequently, he issued letters outlining similar tariffs for products from five more countries.
Tariffs Announced for Additional Countries
A few hours after the initial announcement, President Trump declared heavy tariffs on five more nations - Myanmar, Laos, South Africa, Kazakhstan, and Malaysia - to further address trade imbalances.
Tariff Details Per Country
Japan: 25% tariff
South Korea: 25% tariff
Myanmar: 40% tariff
Laos: 40% tariff
South Africa: 30% tariff
Kazakhstan: 25% tariff
Malaysia: 25% tariff
Balancing Trade Through Tariffs
Justifying the imposition of tariffs, Trump stated that these measures are essential for bolstering the American economy and supporting domestic industries. He posted, 'We cannot tolerate trade deficits with countries that exploit our markets. These tariffs will not only balance our trade but also protect American jobs.'
Letter to the Japanese Prime Minister
Trump announced on his Truth Social platform that the tariffs will take effect from August 1, with letters sent first to Korea and Japan. He shared screenshots of letters sent to Japanese Prime Minister Ishiba Shigeru and South Korean President Lee Jae-Myung, informing them of the new tariff implementation.
In separate letters to both Japan and Korea, he stated, 'From August 1, 2025, we will impose a 25% tariff on all Japanese products sent to the US, separate from all regional tariffs. This is significantly less than what is necessary to eliminate our trade deficit with your country.'
He added that tariffs will also apply to goods sent to avoid heavy tariffs. Yet, Trump assured his Asian trade partners that if they manufacture their products within the US, all tariffs would be waived.
Source: aajtak
The letter further explained, 'As you are aware, should companies from Japan or your country decide to manufacture within the United States, no tariffs will be imposed.'
Nervousness in American Markets
The announcement of a 25% tariff on imports from South Korea and Japan caused a stir in the American market. Major indices on Wall Street experienced significant drops.
According to news agencies, the Dow Jones fell 456.55 points (1.02%) to 44,369.96, while the S&P 500 dropped 53.47 points (0.86%) to 6,225.58. The Nasdaq Composite declined by 187.70 points (0.88%) to 20,413.28.
