US Tariff News: US President Donald Trump has once again announced new tariff rates affecting global trade. This new duty will come into effect from August 1, 2025 and a 25% tariff will be imposed on all goods imported specifically from South Korea and Japan. This duty will be different from the tariffs already imposed on sectors such as steel, aluminum and auto parts. The Trump administration has sternly warned that if any country tries to avoid tariffs by sending goods through third countries, it will be fined additionally.
Special concession to South Korea, but with conditionsTrump has made a special proposal to attract South Korean companies. He said that if Korean companies start production in the US itself, they will be exempted from tariffs. Also, a promise has been made to approve such investments faster. However, Trump also warned that if South Korea raises its tariffs in retaliation, the US will add additional duty along with the existing 25% tariff.
Trump's tariff letterIn a formal letter sent to South Korean President Lee Jae-myung, Trump said,
"Our relationship, unfortunately, is no longer based on equality. These tariffs are necessary to correct Korea's tariff and non-tariff policies and trade barriers that have been in place for many years."
Trump called the trade deficit between the US and Korea a threat to national security and the US economy. The move is being seen as a step towards correcting chronic trade imbalances and one-sided trade policies.
Threat of 10% additional tariff on BRICS countriesTrump launched a scathing attack on BRICS countries (Brazil, Russia, India, China and South Africa) and warned that any country that supports BRICS' 'anti-American policies' will be subjected to 10% additional tariff. The statement comes after India recently signed the BRICS declaration, which criticised US tariffs. Trump wrote on his social media platform 'Truth Social',"Any country that supports the anti-US policies of BRICS will be imposed an additional 10% tariff. There will be no exception to this policy."This tough stance makes it clear that the Trump administration is adopting a strategy to suppress the voices raised against the US on global forums through economic pressure.
Significant fall in stock market
US stock markets witnessed a huge fall on Monday after the new tariff announcement. Investors grew concerned about increasing trade tensions, resulting in:
- Dow Jones Industrial Average: Fall of 447 points (about 1%).
- S&P 500: Down 0.8%.
- Nasdaq Composite: Decrease of 0.9%.
This decline further intensified when Trump confirmed on 'Truth Social' that formal tariff letters have been sent to Japan and South Korea. These tariffs will affect all goods imported from both countries, and a warning has also been given of imposing additional duties in case of retaliation.