Why Is Trump Threatening 25% Tariffs On Japan and South Korea?

July 07, 2025: U.S. President Donald Trump has issued a stern warning to key Asian allies through his social media platform, Truth Social, cautioning them against retaliatory tariff measures. The announcement came alongside images of formal letters sent to the leaders of several Southeast and East Asian nations, including Japan and South Korea.

In the letters, Trump warned that any move by these nations to increase their own import taxes would be met with a proportional increase from the U.S., potentially impacting vital sectors such as automobiles and electronics.

“If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the 25 per cent that we charge,” the letter to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung read.

The tariff standoff comes at a critical time, as India is also expected to receive its own letter from the U.S. President today. New Delhi and Washington are currently engaged in high-stakes negotiations over a bilateral trade agreement, which is nearing finalization ahead of a strict July 9 deadline.

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If a deal isn’t reached by then, a 26 per cent tariff on Indian exports to the U.S. is expected to take effect — comprising an existing 10 per cent duty and a proposed 16 per cent hike. The anticipated U.S. letter to India is expected to serve both as a warning and as a final diplomatic nudge before the tariffs are implemented.

The looming tariff measures could have significant repercussions across global supply chains, particularly in tech and manufacturing sectors, and could also strain diplomatic ties in the Indo-Pacific region at a sensitive geopolitical moment.