US President donald trump has shocked the world by making another important announcement in his trade war today. While trump had announced July 9 as the deadline to impose reciprocal tariffs, it will be postponed to august 1, US Commerce Secretary Howard Lutnick said. In this situation, trump announced on monday that a 25% tariff will be imposed on goods imported from japan and south korea from august 1, 2025. trump made this announcement on his own social media platform, Truth Social, by publishing letters written to the leaders of both countries. In this letter, trump announced that this decision has been taken because trade with the united states is not equal between these two countries. He also stressed the need to review trade relations with these countries in the letter.
 The trump administration has an important goal of creating favorable trade agreements with all countries in the world. That is, Trump's target is that the united states should achieve a trade balance (export-import balance) with any country or that the united states should have an export surplus. In this situation, he decided to impose a tax on the country with which it has an import surplus and imposed a reciprocal tax in the name of Independence Day. In this situation, trump said that trade relations with japan and south korea are not in line with the economic interests of the united states and announced on monday that a 25% tax will be imposed from august 1. Before this announcement, the trump administration had warned that if new trade agreements are not reached by July 9, 2025, the tax will come into effect. But a new deadline of august 1 has been announced for the reciprocal tax, giving the two countries more than three weeks to negotiate. The 25% tax will severely affect trade in various goods imported from japan and South Korea.

 It may especially affect automobiles, electronic products, and technological equipment. It is also expected to have a significant impact on the economies of both countries. Japan's automobile industry and South Korea's electronics and technology manufacturing sectors will face higher production costs and higher prices for their products due to the tax hike. Since both these sectors are important, this will also affect the US. japan and south korea may respond to this tax by imposing counter-tariffs on US goods, which could lead to a new trade war.
For more interesting updates wa click and follow Indiaherald WhatsApp channel

Find out more:

Sowmiya Sriram

08/07/2025 09:07 AM