Trump to put 25% tariffs on Japan and South Korea
By JOSH BOAK
WASHINGTON (AP) — President Donald Trump announced on Monday a 25% tax on imported goods from Japan and South Korea, citing trade imbalances with the two Asian allies.
Trump warned both countries not to retaliate with their own tariffs, threatening to increase tariffs further if they do so.
The move is part of Trump’s ongoing efforts to address trade deficits and boost domestic manufacturing. However, the decision has raised concerns about its impact on economic growth and potential repercussions on global trade.
The stock market responded negatively to the news, with the S&P 500 index down nearly 1% and interest rates on U.S. Treasury notes rising.
Trump justified the tariffs as a necessary measure to support his tax cuts and address trade imbalances with countries like China. However, critics argue that targeting key allies like Japan and South Korea could have strategic implications.
Trump indicated that the tariff rates could be adjusted based on the countries’ relationship with the U.S., setting the stage for further negotiations over the next few weeks.
The decision to impose tariffs comes after unsuccessful trade negotiations with several countries, including Vietnam and the United Kingdom. Despite promises of 90 deals in 90 days, only two trade frameworks have been established so far.
The U.S. trade deficit with Japan and South Korea was highlighted in Trump’s letters, with specific tariffs on autos, steel, and aluminum imports. The broader 25% tariff on goods from Japan and South Korea is aimed at addressing the overall trade imbalances.
This latest move is not the first time Trump has clashed with Japan and South Korea over trade issues, suggesting that previous agreements have not yielded the desired results.
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