Trump Sets 25% Import Tax on Japan, South Korea, and Hikes Duties on Dozen More Countries

By Madelaine Panganiban

Updated: Jul 08 2025, 06:55 AM EDT

Trump Sets 25% Import Tax on Japan, South Korea, and — U.S. President Donald Trump looks up at the new flag on the south lawn of the White House on July 06, 2025 in Washington, DC. Tasos Katopodis/Getty Images/Getty Images

President Donald Trump has introduced new tariffs, placing a 25% tax on all goods coming into the US from Japan and South Korea.

In posts shared on Truth Social on July 7, he warned both countries not to fight back or they could face even steeper tariffs.

"If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge," Trump said in his letter to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae Myung.

Starting August 1, a 25% tariff will apply to all goods coming from Japan and South Korea. Alongside this move, Trump revealed steeper tariffs for a dozen other countries.

According to AP, Myanmar and Laos are set to face the highest rate at 40%, followed by Cambodia and Thailand at 36%, and Serbia and Bangladesh at 35%.

Indonesia will see a 32% tariff, while South Africa and Bosnia and Herzegovina will be taxed at 30%. Kazakhstan, Malaysia, and Tunisia are also included, each with a 25% rate.

Trump's decision follows stalled negotiations with many countries and comes after a 90-day period he gave in April for talks.

According to the White House, the tariff hikes are meant to help bring back US manufacturing and support recent tax cuts.

LOOK: U.S. President Donald Trump posted on Truth Social his letters to the leaders of Japan and South Korea that he set a 25% tax on goods imported goods effective August 1. The letters warned them to not retaliate by increasing their own import taxes, or else the Trump… pic.twitter.com/e6Lw57vyv5
— BusinessMirror (@BusinessMirror) July 7, 2025

Japan, Southeast Asia Nations Seek Relief From US Import Duties

The move sparked a reaction from global markets. The S&P 500 fell by 0.8% Monday, and interest on 10-year US Treasury notes rose to 4.39%, which could lead to higher borrowing costs for homes and cars.

Several countries affected by the new tariffs have responded. In response to Trump's new 25% tariff, South Korea's trade ministry says it plans to quickly begin talks with the US in hopes of avoiding the added import tax.

Japan also confirmed it's working with the US to reach a new agreement. Leaders from Thailand, Malaysia, Indonesia, and Bangladesh all said they plan to continue talks and hope to lower the proposed tariffs.

Wendy Cutler, a former US trade official, said the decision to raise tariffs on Japan and South Korea was "unfortunate," calling both countries key partners for the US on economic and security issues, CNA said.

Trump's tariff order is already facing legal challenges. In May, a US trade court ruled that the president might have gone beyond his legal powers. The administration has appealed the decision.

In a separate effort to calm investor frustrations, UBS, the Swiss banking giant, has begun issuing "goodwill payments" to clients affected by earlier market turmoil, including those impacted by the Trump administration's recent economic policies.