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Investing.com -- U.S. stock indices fell to session lows Monday afternoon, with major averages declining nearly 1% after President Donald Trump announced plans to impose 25% tariffs on all Japanese and South Korean imports.
Trump disclosed the policy via social media, sharing letters addressed to Japanese Prime Minister Ishiba Shigeru and South Korean President Lee Jae-myung. The letters stated that starting August 1, 2025, the U.S. would implement a 25% tariff on "any and all" products from both countries, separate from existing sectoral tariffs.
The proposed tariffs are framed as a response to what Trump characterized as "unsustainable Trade Deficits" that pose "a major threat to our Economy and, indeed, our National Security." The letters noted that companies from these nations could avoid tariffs by manufacturing within the United States.
Trump’s letters also included a warning that any retaliatory tariff increases from Japan or South Korea would be matched with equivalent increases to the proposed 25% base rate. The president suggested the tariffs "may be modified, upward or downward, depending on our relationship" with each country.