Trump announces 25% tariffs on Korea, Japan

U.S. President Donald Trump on Monday announced a sweeping 25 percent tariff on all goods imported from Korea and Japan, citing what he described as enduring trade imbalances with both countries.

 
The tariffs, set to take effect on Aug. 1, were unveiled in separate letters addressed to Korean President Lee Jae Myung and Japanese Prime Minister Shigeru Ishiba, which Trump posted on his preferred social media website, Truth Social.

 
In his letter to Lee, Trump said “goods transshipped to evade a higher tariff will be subject to that higher tariff.”

 
He also warned Korea against retaliatory measures, threatening further tariff increases should Seoul respond with duties of their own.

 
Trump claimed that the 25 percent hike is “far less than what is needed to eliminate the trade deficit disparity we have with your country.”

 
In his letters, Trump said autos would be tariffed separately at the standard 25 percent worldwide, while steel and aluminum imports would be taxed on 50 percent.

However, he noted that the new tariffs would not apply to Korean companies if they “decide to build or manufacture product within the United States,” adding that his administration “will do everything possible to get approvals quickly, professionally, and routinely – in other words, in a matter of weeks.”

 
Trump’s letters to Lee and Ishiba reflect his oft-repeated desire to impose levies on even longtime U.S. allies to reduce what he has described as “unfair trade deficits.”  

 
However, critics noted that the move risks straining relations with two of Washington’s most critical economic and strategic partners in Asia, both of which are seen as bulwarks against China’s expanding regional influence.

 
“These tariffs may be modified, upward or downward, depending on our relationship with your Country,” Trump said, leaving open the possibility of further changes.

 
An earlier, broader tariff proposal by Trump triggered severe volatility in global financial markets. In response, the Trump administration issued a temporary 90-day negotiating window, during which most nations faced a reduced 10 percent tariff, offering room for bilateral deals.

 
That window is set to close this week, but administration officials have indicated that the three-week period before the new tariffs take effect could serve as an informal extension of talks.  

Source : https://koreajoongangdaily.joins.com/news/2025-07-08/national/politics/Trump-announces-25-tariffs-on-Korea-Japan/2347393

Comprehension

What do you think about using tariffs to solve trade problems?
Do you think it’s fair to tax goods more if they come from another country? Why or why not?
How might these new tariffs affect workers in Korea or Japan?
Have you ever bought something that was “Made in the USA”? Do you check the labels?
How important is trade between countries in your opinion?
What products from the U.S. are popular in your country?
Do you think building factories in other countries is good for local jobs?
What happens to prices when tariffs are added to imported goods?
Should allies like Korea and Japan be treated differently in trade? Why or why not?
How do you think these decisions affect people, not just governments?

Discussion

What did President Trump announce on Monday?
When will the new tariffs begin?
Why does Trump say he is imposing tariffs on Korea and Japan?
What will happen if Korea responds with its own tariffs?
What are the specific tariff percentages on steel and aluminum?
What is the tariff on autos according to Trump’s letters?
How can Korean companies avoid the tariffs?
Why are critics worried about the new tariffs?
What countries are considered important U.S. partners in Asia?
What is the purpose of the three-week period before the tariffs take effect?

Vocabulary

Tariff – A tax on goods brought into a country.
Imbalance – A lack of equality between two sides.
Transshipped – To move goods from one ship or transport method to another.
Retaliatory – A response intended to punish or get revenge.
Disparity – A large difference between two things.
Levies – Taxes or fees collected by the government.
Bulwark – A strong support or protection.
Volatility – Sudden, unpredictable changes, especially in prices or emotions.
Negotiating window – A period of time to discuss or make deals before action is taken.
Manufacture – To make something in large amounts using machines.