<h1>President announces 25% tariffs on Japanese and South Korean goods starting August 1</h1> The US President announced 25% tariffs on Japanese and South Korean goods effective August 1, citing trade imbalances with these Asian allies. Letters warned both countries against retaliatory measures, threatening additional tariff increases if they raise their own import taxes. The President declared an economic emergency to impose these unilateral taxes, aiming to boost domestic manufacturing and fund recent tax cuts. Stock markets declined following the announcement, with the S&P 500 dropping nearly 1%. The administration previously announced a 90-day negotiating period for most countries at 10% baseline tariffs, which technically ends soon. Officials indicated tariff revenues would help offset tax cuts, potentially shifting tax burden to middle and lower-income consumers. The US maintained $69.4 billion and $66 billion trade deficits with Japan and South Korea respectively in 2024.