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How disruptive would new tariffs be, both for South Korea and Japan and the US? | DW News

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In a shocking escalation of trade tensions, former President Donald Trump has announced a staggering 25% tariff on goods imported from Japan and South Korea, set to take effect on August 1st. This decision comes just three weeks after the White House’s initial deadline for a trade deal with these key allies, signaling a dramatic shift in U.S. trade policy that could have far-reaching consequences.

Trump’s announcement, shared via his Truth Social platform, included letters sent to the leaders of both nations warning against any retaliatory measures. He characterized the U.S. trade deficit with Japan and South Korea as a “major threat” to national security, underscoring the administration’s aggressive stance in ongoing negotiations. The letters coincide with the expiration of a 90-day negotiating window, leaving both countries in a precarious position.

Experts warn that these tariffs could devastate Japan’s economy, as approximately 30% of its exports to the U.S. consist of automobiles and auto parts. South Korea is poised to feel similar repercussions. The Trump administration has suggested that manufacturers can mitigate the impact by increasing production within the U.S., but many Japanese and South Korean companies already operate at high capacity stateside. Consequently, American consumers may soon face a limited selection, with fewer imported vehicle options available in the market.

The timing of this announcement adds urgency to the situation, particularly with Japan’s upcoming upper house elections on July 20th. Prime Minister Sheiba may struggle to make significant concessions under political pressure, complicating the potential for a swift resolution. As tensions rise, the global economic landscape hangs in the balance, with both nations grappling with the fallout of these tariffs. The clock is ticking, and the stakes couldn’t be higher.

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