Trump Imposes 25% Tariffs on Japan and South Korea, Markets React

President TRUMP has initiated a new trade policy, imposing a 25% tariff on all imports from Japan and South Korea. Letters addressed to Japanese Prime Minister Ishiba Shigeru and South Korean President Lee Jae-myung outline the measures, which are separate from existing sector-specific duties. The policy also targets goods rerouted through third countries to evade higher charges, subjecting them to increased rates.

The letters emphasize the longstanding trade relationships but highlight persistent deficits. They invite firms from both nations to manufacture in the U.S., offering tariff exemptions and expedited approvals. South Korea faces an additional caveat: any increase in its own duties will be stacked atop the 25% levy.

Markets reacted swiftly, with the Dow dropping 447 points (approximately 1%) amid investor concerns over potential retaliatory measures. The MOVE signals a broader shift in trade strategy, with further announcements anticipated.