The U.S. to Impose Retaliatory Tariffs on a Series of Countries Starting August 1

Trump Imposes Tariffs on 14 Nations, Open to Talks Before August 1 Deadline

Trump Announces Tariff Action on 14 Economies

On July 7, U.S. President Donald Trump officially signed an executive order imposing retaliatory import tariffs on 14 economies, including Japan and South Korea. While the tariffs are set, Trump indicated he remains open to negotiations if other countries submit constructive proposals before the August 1 deadline.

“I’m confident about the August 1 deadline, but not 100%. If they call and want to do it differently, we’re open,” Trump said.

Letters to Japan and South Korea

Through his Truth Social account, Trump released two official letters addressed to Japanese Prime Minister Ishiba Shigeru and South Korean President Lee Jae-myung. Both letters state that the U.S. will apply a 25% import tariff on goods from the two countries starting August 1. Trump emphasized this is a base rate, separate from additional industry-specific tariffs.

He also warned that any goods transshipped through third countries to evade taxes would be subject to even higher penalties.

Tariff Rates by Country (As of July 7)

Trump stated that if countries remove trade barriers and non-tariff policies, the U.S. may consider revising these tariffs, depending on bilateral relations.

Japan and South Korea Respond

South Korea’s Ministry of Industry said it will intensify negotiations in the remaining days to reach a mutually beneficial resolution. The country posted a record $55.6 billion trade surplus with the U.S. in 2024, up 25% from the previous year, mainly from automotive and steel exports.

Japanese Prime Minister Ishiba also confirmed that Japan will continue bilateral talks. The auto sector is a major concern, as exports to the U.S. dropped sharply in May — vehicles down 24.7%, parts down 19%.

Market Reaction: Automakers & Tech Stocks Slide

Following the announcement, stock markets responded negatively. Toyota shares dropped 4.1%, Honda 3.8%, and South Korea’s SK Telecom tumbled 7.5% on U.S. exchanges.

More Letters Coming

White House Press Secretary Karoline Leavitt said another 12 countries will soon receive official tariff notification letters from President Trump, all of which will be posted on Truth Social.