Although Trump is prepared to impose a 25% tariff on both Japan and South Korea, he has left room for negotiation. If Japan and South Korea are willing to open their currently closed trade markets to the United States and eliminate tariffs, non-tariff policies, and trade barriers against the U.S., then the U.S. may consider adjusting the content of this letter.

In simple terms, if Japan and South Korea further open up to the United States, then the U.S. can lower the 25% tariff. However, if Japan and South Korea increase retaliatory tariffs, the U.S. will continue to escalate under the 25% scenario.