Trump administration imposes 25% levies on Japan and South Korea

White House warns about tariff roll out

White House warns tariffs could come in early August as Trump's 90-day pause nears end 03:42

President Trump on Monday said 25% tariffs on goods from South Korea and Japan will go into effect on August 1. 

Mr. Trump posted nearly identical letters to the two nations' respective leaders on his Truth Social media platform Monday, indicating that the levies will take effect on the first day of August. That's a later date than July 9, which is when the president's 90-day pause on so-called reciprocal tariffs would have expired. 

Mr. Trump said in each memo that the letter "demonstrates the strength and commitment of our Trading Relationship," and that "we invite you to participate in the extraordinary Economy of the United States."

The 25% levies apply to "any and all Japanese products sent into the United States, separate from all Sectoral Tariffs," Mr. Trump added in his letter to Japanese Prime Minister Shigeru Ishiba. 

He also warned that if either South Korea or Japan raises tariffs on the U.S., the U.S. would reciprocate by adding such figure to the 25% baseline rate. 

Trade policy expert Barry Appleton told CBS MoneyWatch that Monday's announcements "are simply indications that he is making them pay full admission price to access the U.S. market."

"At 25%, it is possible, but challenging, to trade with Japan and Korea. This rate was carefully set at the higher side of the spectrum. In essence trade with the U.S. now is a pay to play proposition for Japan, Korea and likely others to come," he said. 

Appleton added that the country-specific rates announced Monday do note bode well for other nations looking to strike deals with the U.S., including EU countries, Canada, and Switzerland.