President Donald Trump issued letters to Japanese and South Korean leaders, announcing that the countries will receive 25% tariffs.
“It is a Great Honor for me to send you this letter in that it demonstrates the strength and commitment of our Trading Relationship, and the fact that the United States of America has agreed to continue working with Korea, despite having a significant Trade Deficit with your great Country,” Trump’s letters read. “Nevertheless, we have decided to move forward with you, but only with more balanced, and fair, TRADE.”
The letters state that a 25% tariff on “any and all Korean products sent into the United States” will begin August 1, explaining that “goods transshipped to evade a higher Tariff will be subject to that higher Tariff.”
The letters noted that tariffs can be avoided if “Korea, 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.”
Should South Korea “wish to open” its “heretofore closed Trading Markets to the United States, and eliminate your Tariff, and Non Tariff, Policies and Trade Barriers,” the U.S. will “consider an adjustment to this letter.”
Trump noted in his letters that Japan and South Korea will “never be disappointed with The United States of America.”
Prior to the letters’ release, Treasury Secretary Scott Bessent noted that the Trump administration was preparing to make several trade announcements.
“We’ve had a lot of people change their tune in terms of negotiations. So my mailbox was full last night with a lot of new offers, a lot of new proposals,” Bessent told CNBC’s Squawk Box. “So it’s going to be a busy couple of days.”
