Trump Raises Tariffs on Japan and South Korea Starting August 1

U.S. President Donald Trump has officially announced that a new 25% tariff will apply to all imports from Japan and South Korea starting August 1. This move marks a significant escalation in the ongoing global trade war that began earlier this year.

In letters sent to 14 countries, including major exporters like Japan and South Korea, Trump warned that the U.S. will no longer tolerate what he called “unfair trade practices.” The letters also reached smaller exporters like Serbia, Thailand, Bangkok, Kazakhstan and Tunisia. While the U.S. expressed openness to fresh negotiations, Trump made it clear that any retaliation would result in even higher U.S. tariffs.

> “If you raise your tariffs, we will add your increase to our 25% rate,” Trump wrote in letters published on his Truth Social account.

Trump Reveals Tariff Rates for 14 Countries, Hints at Possible Deals with India and Others

President Donald Trump has released a detailed list of new tariff rates for 14 countries, signaling a major escalation in his global trade strategy. According to letters made public on his Truth Social platform, countries like Myanmar and Laos will face the highest flat rate of 40%, while Cambodia and Thailand will be taxed at 36%. Other nations, including Japan, South Korea, Malaysia, and Kazakhstan, will see tariffs set at 25%.

Here is the full list of announced tariff rates:

1. Japan – 25%

2. South Korea – 25%

3. South Africa – 30%

4. Kazakhstan – 25%

5. Malaysia – 25%

6. Laos – 40%

7. Myanmar – 40%

8. Tunisia – 25%

9. Bosnia and Herzegovina – 30%

10. Indonesia – 32%

11. Bangladesh – 35%

12. Serbia – 35%

13. Cambodia – 36%

14. Thailand – 36%

Trump also provided insights into ongoing trade discussions. He confirmed that the U.S. has already finalized trade agreements with the United Kingdom and China, and is close to a deal with India. For other nations, Trump said talks had failed or stalled, prompting the U.S. to move forward unilaterally with tariffs.

> “We’ve made deals with some, others we just send them a letter. If there’s a reason to adjust, we’ll look at it — we won’t be unfair,” Trump said.

These new tariffs are part of Trump’s broader effort to reset global trade relationships and reduce America’s trade deficits. The announcement adds further pressure on countries to return to the negotiating table or face higher trade costs with the U.S.

U.S. Proposes 10% Tariff on EU Imports, Excluding a Few Key Items

The United States has suggested a new trade arrangement with the European Union that would place a 10% tariff on most goods coming from the EU. However, some sectors like aircraft and alcoholic spirits may be excluded, according to EU diplomats and officials from member countries.

Despite EU requests, the U.S. has not agreed to exclude certain politically sensitive items like cars, steel, aluminum, and medicines from the new tariff plan.

Countries such as France, Italy, and Ireland are likely to support the deal, especially since it spares industries like aircraft manufacturing and the alcohol sector, which are important to their economies.

The talks are still ongoing, and it’s unclear whether the EU will accept the current terms or push for more exemptions.

Market Reaction: Stocks Fall, Asian Currencies Weaken

Following the news, Wall Street saw an immediate reaction. The S&P 500 index dropped sharply. Meanwhile, the Japanese yen and South Korean won both fell nearly 1% overnight. Investors are worried that the tariff war could hurt global trade and economic growth.

Interestingly, these new tariffs do not stack on top of existing sector-based tariffs. For example, Japanese car imports already face a 25% duty, and that rate will remain unchanged, rather than doubling to 50%.

Renewable Energy Tax Credits Rolled Back

In a separate executive action, Trump also signed a new order targeting the renewable energy sector. He directed federal agencies to start phasing out tax credits for wind and solar energy projects.

The decision is part of the newly signed One Big Beautiful Bill Act, which eliminates key benefits for renewable energy developers after 2026.

Why Is This Happening?

According to the executive order:

Wind and solar are “unreliable and expensive”

They depend too heavily on foreign supply chains

They can harm the electric grid and natural environment

Trump criticized the long-standing federal support for renewable projects and said it’s time to refocus on traditional energy sources like natural gas, coal, and nuclear.

Key Points from the New Executive Order:

Tax credits for wind and solar will end after 2026 unless projects start construction before the deadline.

Projects that begin after 2026 must be operational by 2027 to qualify for remaining benefits.

The Treasury Department is tasked with enforcing the new tax policy.

The Interior Department must review and revise any regulations that favor renewable energy.

Both departments have 45 days to submit a report to the White House outlining the steps they’ve taken to implement the policy changes.

What’s Next?

Trump said he is open to renegotiation with trading partners if they submit new proposals. However, the clock is ticking for countries that want to avoid these new tariffs. With the August 1 deadline approaching, it remains to be seen how Japan, South Korea, and others will respond.

On the energy front, industry experts believe this policy shift could slow down new investments in solar and wind infrastructure in the U.S. as developers lose financial incentives.

Summary

U.S. will impose 25% tariffs on all goods from Japan and South Korea starting August 1.

Trump threatens to add further tariffs if countries retaliate.

Wall Street and Asian currencies reacted negatively to the news.

A new executive order ends tax credits for wind and solar projects after 2026.

The U.S. government is pushing for energy policy to favor traditional sources over renewables.

Update: U.S. Pushes Trade Talks with South Korea and Japan Amid Tariff Deadline

South Korea and Japan are stepping up trade negotiations with the United States as the deadline for new U.S. tariffs approaches.

South Korea’s Trade Minister recently met U.S. Commerce Secretary Lutnick to discuss stronger cooperation in manufacturing. He stressed that sector-specific tariffs must be part of any deal and warned that the three-week extension on the tariff pause offers limited time. Talks will continue on Wednesday.

Meanwhile, Japan’s top tariff negotiator Akazawa held a 40-minute phone call with Secretary Lutnick and later briefed Prime Minister Ishiba. Both sides agreed to stay actively engaged in talks and maintain momentum to avoid tariff impacts.