Donald Trump announces goods from Japan and South Korea face 25 per cent tariffs from August 1 under new levy plans

Source: Australian Broadcasting Corporation | Original Published At: 2025-07-07 16:46:14 UTC

Key Points

• Donald Trump imposes 25% tariffs on Japan and South Korea, effective August 1, 2025.
• Additional tariffs announced on Malaysia (25%), Kazakhstan (25%), South Africa (30%), Laos (40%), and Myanmar (40%).
• Tariff rates may be adjusted if targeted countries remove trade barriers; retaliatory measures threatened.
• US stocks declined in response; White House defends policy as correcting trade deficits.
• BRICS leaders, particularly Brazil's Lula, criticized Trump's tariff threats as irresponsible.

Donald Trump has set a 25 per cent import tariff on all goods from Japan and South Korea as he unveiled the latest swathe of levies on goods from countries around the world.

He also announced 25 per cent tariffs on Malaysia and Kazakhstan, 30 per cent on South Africa and 40 per cent on Laos and Myanmar.

The US president confirmed the move on his social media platform, Truth Social, where he posted images of the letters he sent to the leaders all countries on Monday, US time.

He said to Japan’s Prime Minister Shigeru Ishiba and South Korea’s President Lee Jae-myung that the 25 per cent levy would be for all goods and separate to sector-specific tariffs.

“Please understand that the 25% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country,” Mr Trump wrote in both letters.

Mr Trump said that goods would face the 25 per cent levy from August 1, but said the arrangements could change.

“If you wish to reopen your heretofore close Trading Markets to the United States, and eliminate your Tariff, and Non Tariff, Policies and Trade Barriers, we will, perhaps, consider an adjustment to this letter,” he wrote.

” If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge. “

The rate for South Korea is the same as announced on April 2, while the rate for Japan is 1 point higher than first announced.

US stocks fell in response to the president’s latest tariff manoeuvres.

A letter sent by Donald Trump to South Korea’s president. (Truth Social/The White House)

White House spokeswoman Karoline Leavitt said another 12 letters would be sent today to other countries outlining new levy rates and they would each be posted online.

She said further letters would be sent by Mr Trump in coming days.

“This is decades of bad trade policy that has led to a deficit that is ravaging our country, that is ravaging our middle class and the president is taking a very deliberate approach to correcting this wrong,” Ms Leavitt told reporters.

At the weekend, key officials including US Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnik said agreements with several countries were close to being finalised, without saying which ones.

Mr Bessent told American media on Monday that negotiations remained ongoing.

US tariffs delayed until August 1 Photo shows Donald Trump inspects beds behind fencing. The United States is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, US President Donald Trump says, with the higher rates scheduled to take effect on August 1.

“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,” Mr Bessent told CNBC.

“It’s going to be a busy couple of days.”

A 90-day pause on Mr Trump’s so-called “Liberation Day” tariff policy was enforced to allow time for new deals to be made, but so far only the United Kingdom and Vietnam have struck new agreements.

The pause comes to an end this week on July 9, but his administration confirmed at the weekend a three-week delay.

Tariff negotiations ongoing

European Commission President Ursula von der Leyen had a “good exchange” with Mr Trump and the EU still aimed to reach a new tariff deal before the July 9 deadline, a Commission spokesperson said.

It emerged last week that Mr Trump had threatened a 17 per cent levy on EU food and agricultural exports.

He also put members of the BRICS group in his sights as its leaders met in Brazil, threatening an additional 10 per cent tariff on any countries aligning themselves with “anti-American” policies.

The BRICS group comprises Brazil, Russia, India and China and South Africa along with recent joiners Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.

Brazilian President Luiz Inacio Lula da Silva said on Monday, local time, it was “irresponsible” for the US president to threaten countries with tariffs while on social media, adding that other nations had the right to reciprocate.

After the BRICS summit concluded in Rio de Janeiro, Mr Lula played down Trump’s threat on Sunday to slap additional tariffs on the bloc.

The Brazilian president added that the BRICS group “does not want to affront anyone.”

ABC/wires