Trump announces 25% tariffs on South Korea and Japan in first trade letters
Mr Trump, citing trade imbalances, said the so-called reciprocal tariffs on America's two trading partners would be implemented on August 1.
In the letters addressed to the countries' leaders - posted on his Truth Social platform - Mr Trump warned both South Korea and Japan not to retaliate.
'If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added on to the 25% that we charge,' he wrote.
US markets slid following the announcement, with the Dow Jones Industrial Average dropping 507 points – or 1.13 per cent. The S&P 500 and Nasdaq Composite fell 0.90 and 0.94 per cent, respectively.
Mr Trump had said he would be issuing trade letters to trading partners beginning this week with countries that would dictate their tariff rate.
He had previously announced reciprocal tariffs of 25 and 24 per cent on South Korea and Japan, respectively, as part of his 'Liberation Day' announcement on April 2.
Those reciprocal tariffs, along with dozens of others, were then delayed for 90 days following turmoil in financial markets that prompted Mr Trump to reverse course.
His shifting trade policy began a new era of uncertainty in the global economic outlook, with central bankers and economists trying to understand how the effects of tariffs will relate to the cost of goods, hiring and firing practices, investment and more.
Earlier on Monday, Treasury Secretary Scott Bessent said Mr Trump's administration expected to make 'several' trade-related announcements within the next two days. As of Monday, the US had only agreed to trade deals with the UK and Vietnam.
'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.
Washington and Beijing had also previously agreed to lower their tariff rates on each other as part of a so-called trade truce.
Mr Trump has also threatened to impose an additional 10 per cent tariff on any country that aligns itself with the Brics alliance.
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