The US Imposes 25% Tariff on Japan and South Korea, Trade Tensions Increase

The United States officially imposed **a 25% tariff on imports from Japan and South Korea** starting in April 2025 as part of a reciprocal tariff policy announced by President Donald Trump. This tariff targets the automotive sector, auto parts, as well as steel and aluminum products that are the main exports of both countries to the US.

This policy has sparked significant concerns in Japan and South Korea. Japan, which has a large automotive industry, views this move as a heavy blow and has pledged to support its domestic industry in facing the impact. Meanwhile, South Korea announced emergency measures by preparing financial support of up to US$10 billion for the automotive sector and plans to negotiate with the US to find the best solution.

In response, China, Japan, and South Korea are strengthening their free trade cooperation through RCEP and accelerating negotiations for a trilateral trade agreement to confront the US tariffs that are deemed detrimental to the three countries.

This US move aims to address trade imbalances and protect domestic industries, but it has the potential to trigger broader trade tensions in the East Asian region.#Japan #Korea $BTC