A new episode in the World Commercial War was written today (07.07.2025) as Donald Trump announced the enforcement dictatorial 25% in imported goods from Japan and South Korea, starting on August 1st.
Donald Trump’s move against Japan and South Korea is part of the broader plan for unilateral duties and causes turbulence on markets, businesses and central banks trying to manage the impact.
After a three -month period of waiting and lower temporary duties (10%), the US has decided to activate the full package of so -called “reciprocal duties” in Japan and South Korea. The two countries were one of the first to target Trump’s second term, as they have not yet entered into new trade agreements with Washington.
The announcements were made by the US President himself through Truth Social, his own social networking platform, and sent letters to the two Asian countries. The duties imposed are now 25%, and he left the possibility of an additional sectoral duties, depending on the type of imported products.
Warning of retaliation
Trump did not hesitate to warn the two countries that any countermeasures would cause new US duties. “If for any reason you decide to increase your duties, then whatever percentage you choose will be added to the 25% we already impose,” he said in his letters to the two countries’ governments.
The hard line of Trump is part of his offensive effort to redefine US trade with the rest of the world, a move that creates waves of uncertainty in global markets.
Impact on businesses and economics
Although Washington seeks to increase public revenue, especially after the voting of 3.4 trillion tax cuts and costs. Dollars, the burden of duties eventually falls on American importers and businesses. They are called upon to absorb costs or raise prices for consumers by limiting profit margins.
Jonathan Gold, Vice President of the National Retail Federation, noted: “All this new revenue is nothing more than a tax on US businessmen.”
Window for new upheavals worldwide
Japan and Korea were the 5th and 7th largest import source in the US last year, corresponding to almost 9% of US imports. New duties are likely to disrupt supply chains in critical areas, from technology to cars.
As Allianz Research notes, “global uncertainty is at historically high levels”, with a slowdown in growth rate at 2.5% worldwide for 2025 – the lowest level since 2008, if references are excluded.