TRUMP IMPOSES 25% TARIFFS ON JAPAN AND SOUTH KOREA, WARNS OF ESCALATION AHEAD OF TRADE DEADLINE

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By Aishat Momoh. O.

U.S. President Donald Trump announced Monday the imposition of 25 percent tariffs on imports from Japan and South Korea, escalating trade tensions with two of America’s closest allies in East Asia. The move came in the form of formal letters sent to both countries, ahead of a self-imposed deadline to finalize trade agreements.

The tariffs, set to take effect August 1, target nations Trump claims maintain trade relationships with Washington that are “unfortunately, far from Reciprocal.” In near-identical letters addressed to the Japanese and South Korean leaders, the president warned of further economic penalties if the countries retaliate.

Trump first unveiled sweeping global tariffs on April 2, which he dubbed “Liberation Day” but postponed enforcement for 90 days amid market turmoil. That grace period expires Wednesday. Despite initial denials, the White House appears to have delayed full enforcement until August 1.

Japanese Prime Minister Shigeru Ishiba responded defiantly on Sunday, saying Tokyo would not “easily compromise” in trade negotiations. South Korea has yet to issue an official statement.

Treasury Secretary Scott Bessent, speaking to CNBC on Monday, said the administration is in active talks with several countries and expects new trade agreements “within 48 hours.” Bessent noted an increase in offers and proposals from countries eager to avoid tariffs, claiming his “mailbox was full last night.”

So far, the U.S. has reached deals with only the United Kingdom and Vietnam. A temporary reduction in tariffs has also been agreed upon with China, though that pause is set to expire in mid-August. High-level negotiations with Beijing continue, with meetings held in Geneva and London and more expected in the coming weeks.

Trump’s broader trade agenda originally aimed to deliver “90 deals in 90 days,” but progress has been limited. Still, trade adviser Peter Navarro said Monday that the administration is “happy with the progress,” noting that every major deficit country is “fully engaged.”

In addition to tariffs on traditional allies, Trump has threatened a further 10 percent levy on nations aligning with the BRICS bloc accusing them of “Anti-American policies” following criticism of U.S. trade moves at a recent summit.

Meanwhile, European Commission President Ursula von der Leyen reportedly had a “good exchange” with Trump during a weekend call, as the EU seeks to avert similar trade penalties.

With the clock ticking, trading partners are racing to reach agreements before Trump’s tariffs take full effect in August.