U.S. President Donald Trump announced the introduction of a 25% tariff on all imported goods from Japan and South Korea, effective August 1.
Announcement of the Tariffs on Imports from Japan and South Korea
Starting August 1, 2023, the United States will impose a 25% tariff on all imports from Japan and South Korea. The measures will cover every category of goods and will be effective separately from other duties.
Content of Letters to the Prime Ministers
On his platform Truth Social, Trump posted screenshots of letters addressed to Japanese Prime Minister Ishiba Shigeru and South Korean President Lee Jae-myung. Each letter contains information on the 25% tariff and warnings about goods rerouted through third countries to evade higher charges.
Market Reactions to Tariff News
In response to the announcement of the new tariffs, stock indices began to dip. The Dow Jones fell by 447 points (about 1%), the S&P 500 dropped 0.8%, and the Nasdaq slipped 0.9%. Stocks of companies like Toyota and Honda fell by about 4%, and there were slight declines in AMD, Nvidia, Apple, and Alphabet shares.
With the introduction of new tariffs, an active phase of trade negotiations with Japan and South Korea is expected, which may lead to additional market changes.
