Trump announces 25 per cent tariff on two key trading partners
Share this @internewscast.com
US President Donald Trump has intensified the pressure on two significant American trading partners, Japan and South Korea, by sending letters to their leaders outlining the new tariff rates.
These countries will encounter a 25 per cent tariff starting August 1, Trump announced in posts on Truth Social on Monday (early Tuesday AEST), showcasing the letters and possibly allowing more time for negotiating agreements.

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.

US President Donald Trump (pictured with Howard Lutnick) sent letters to countries on July 7 telling them what rates their goods will be tariffed at if they don’t quickly make trade deals with the United States.(Photo by Tomohiro Ohsumi/Getty Images)

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.

Share this @internewscast.com
You May Also Like
In this undated photo provided by shipwreck salvage company 1715 Fleet- Queens Jewels, LLC, diver Levin Shavers shows coins uncovered from a Spanish shipwreck off the Atlantic coast of Florida.

Archaeologists Discover $1.5 Million Worth of Gold Coins in Spanish Shipwreck

Hidden below the turquoise waters along Florida’s “Treasure Coast,” a team of…
FILE - A Nobel medal is seen at the Swedish ambassador's residence in London, Dec. 8, 2020. (Niklas Halle'n/Pool via AP, File)

Essential Information on the Esteemed Nobel Prize Honors

The Nobel Prize winners will be announced next week. The awards are…

Fresh Development in Controversial Pamphlet Case Aiming at Teal MP Allegra Spender

The Australian Electoral Commission (AEC) has launched legal action against a person…

Gaza strikes reportedly persist despite Trump’s directive for Israel to halt ‘immediately’

Gaza’s civil defence agency said Saturday that Israel carried out dozens of…
Hamas agrees to release hostages after 'accepting' parts of peace plan

Hamas Agrees to Release Hostages After ‘Accepting’ Elements of Peace Proposal

Hamas says it has accepted some elements of US President Donald Trump’s…

Underworld Figure Tony Mokbel’s Appeal Outcome Decided by Court

Three appeal judges have delivered a split decision in underworld figure Tony…
farm at Woodhill

Husband to Face Trial for Allegedly Faking Wife’s Death

A man facing charges for allegedly making his wife’s death appear as…
Canning Vale

Perth Teenager in Critical Condition Following Car Park Stabbing Incident

A 16-year-old boy is clinging to life after being stabbed several times…
At the AFR Asia Summit Andrew Hastie, Shadow Minister for Defence, talks at the summit in Melbourne

Leading Politicians Respond to Andrew Hastie’s Departure from Liberal Front Bench

Sussan Ley’s leadership of the Liberal Party has been rocked by Andrew…

Sean ‘Diddy’ Combs Receives Four-Year Prison Sentence

Sean “Diddy” Combs was sentenced on Friday to more than four years…

Manchester Synagogue Attack: Victim Unintentionally Shot, Suspect Identified by Police

UK police said they accidentally shot a victim who died in the…
An embattled former Queensland mayor is facing accusations he exaggerated his medical history during his campaign. Troy Thompson was suspended from the high-ranking position last November during an investigation by Queensland's Crime and Corruption Commission (CCC).

Disgraced ex-mayor accused of inflating his health records

An embattled former Queensland mayor is facing accusations he exaggerated his medical…