President Donald Trump announced 25% tariffs on goods from Japan and South Korea starting Aug. 1, as he moves to impose unilateral tariffs on countries that have not reached trade deals with his administration.

The two Asian countries were the first announcements in what the president promised would be a series of trade demands and deals announced Monday. Trump's hasty efforts to overhaul U.S. trade policy in his second term have been a source of persistent uncertainty for markets, central bankers and executives trying to gauge the impact on production, inventories, hiring, inflation and consumer demand — routine planning that is difficult enough without the costs of tariffs that go into effect one day and are gone the next.

Ultimately, the Japanese and South Korean tariffs, shared on his Truth Social platform, were largely in line with what he had said the countries would face. After a 90-day suspension of his so-called reciprocal tariffs, which initially hit Japan at 24% and South Korea at 25%, Trump lowered them to 10% to allow time for negotiations.

Trump warned the countries against retaliating in his letter, saying any action would be met with a U.S. response.

"If for any reason you decide to increase the Tariffs, then, whatever amount you choose to increase them will be added to the 25% that we are imposing," Trump said. (alg)

Source: Bloomberg