In the two almost identical letters, Trump expressed specific concerns over the trade deficits the US has with these countries, as the US imports more than it exports there. Trump also stated these tariffs are in response to other policies he believes hinder American goods from entering foreign markets.

Despite this announcement, the stocks of automotive companies with significant manufacturing operations in Japan and South Korea fell sharply. For example, US-listed shares of Nissan Motors decreased by over 7 per cent, while Toyota and Honda shares dropped by 4 per cent.

These declines might highlight the increased risk of Trump possibly elevating tariffs on cars from these countries if they retaliate against the proposed 25 per cent tariffs by imposing higher tariffs on American products.

“These Tariffs may be modified, upward or downward, depending on our relationship with on our relationship with your Country. You will never be disappointed with The United States of America,” Trump ended the letters before signing off.

US stocks, which were already sliding, dropped lower after Trump’s announcement. The Dow was down as much as 530 points, or 1.2 per cent. The S&P 500 fell 0.87 per cent and the Nasdaq fell 0.9 per cent.