Of the teasers of tariff measures aimed at the United States, only two countries, South Korea and Japan, have made their letters public. As these are relatively large trade surplus countries and allies, they are likely to be able to use tariff pressure to pressure the United States on August 1.
The White House said in a letter on the same day that the United States has maintained trade relations with South Korea and Japan for many years.
"We have maintained a strong relationship with South Korea, but due to the disproportionate trade deficit and tariff and non-tariff barriers that go against reciprocity, we can no longer maintain the current structure," he said, expressing strong regret.
The two letters, which were sent to the US, are identical in content except for the names of the countries and the leaders of the two countries. President Trump said, "Our economies are the number one markets in the world, and we welcome South Korea and Japan to participate in fair and balanced trade."
"We look forward to this," he said, emphasizing that "starting August 1, a basic tariff of 25% will be applied to all Korean and Japanese products." This is separate from the existing item-based (sector-based) tariff system, and will be applied to products imported to the United States.
The measure will be imposed on all Korean products imported into the country. The 25% tariff rate is the same as the reciprocal tariff rate that President Trump announced on Liberation Day on April 2.
The letter also included a warning of retaliatory tariffs. President Trump said, "If South Korea and Japan increase tariffs on U.S. products, we will impose tariffs equal to the amount of those increases.
"These measures are aimed at correcting the trade imbalance that has built up due to long-standing tariff and non-tariff barriers between Korea and Japan," he said.
"The deficit poses a serious threat to the U.S. economy and national security," he said. However, Trump left room for tariffs, saying they would not be permanent. "If South Korea opens up its market,
"If the United States removes non-tariff barriers, tariffs can be raised or lowered," he said, adding, "South Korea will never be disappointed by the United States."
This letter is a de facto ultimatum from the US to South Korea ahead of the deadline for mutual tariff moratorium, which is scheduled to end on July 8.
The burden now falls on the Japanese government to seek a reduction in the reciprocal tariffs through more active negotiations with the United States before the reciprocal tariffs take effect on August 1.
Japan, which also has a 25% tariff, is also subject to this, so it is not at a disadvantage in comparison, but it is necessary to assess the advantages and disadvantages depending on the tariff levels with the European Union (EU).
Considering that President Trump made only his letters to South Korea and Japan public, it is possible that he is pitting South Korea and Japan, which have large trade surpluses with the United States, against each other to quickly
The intention to conclude a trade agreement can be seen. Since his first term, President Trump has consistently argued that "America opened its markets to the world, but what it got in return was a massive trade deficit."
There is a perception that South Korea and Japan are taking advantage of the American market while keeping their own markets relatively closed.
In particular, South Korea and Japan are highly dependent on the US market, and as such
It seems that Trump is actively targeting these two allies of the United States, hoping to conclude trade negotiations and set a model for other countries.
Under the assumption that the relationship would not easily fall apart, this was a card that was played to maximize practical benefits.
2025/07/08 09:56 KST
Copyrights(C) Edaily wowkorea.jp 88
