U.S. Issues Tariff Letters to Japan and South Korea Amid Trade Renegotiations

The U.S. will issue tariff letters within 48 hours as new trade proposals arrive ahead of a Wednesday deadline. President Donald TRUMP announced that official letters would be sent starting at 12:00 pm ET on Monday, notifying countries of proposed tariff rates without ultimatums. These are framed as renegotiation offers rather than threats, with a clear message: 'Here’s the rate unless you prefer to negotiate.'

Japan and South Korea are first in line, with Japan facing a 25% tariff—one percentage point higher than April's proposal—while South Korea's rate remains unchanged. Trump emphasized that any retaliatory tariff hikes by other nations WOULD trigger additional U.S. levies on top of the existing 25%.

Only two deals have been finalized so far, with the U.K. and Vietnam. Negotiations with other nations remain contentious, as Washington pushes for universal agreements under the threat of heavy tariffs. Meanwhile, Canada has withdrawn its digital services tax, resolving a Biden-era dispute.