Jul. 7 at 5:18 PM
The US will impose 25% blanket tariffs on imports from Japan & South Korea starting Aug 1
2 form letters appear to be the 1st of what President Trump said could be as many as 15 letters sent b/n Monday & Wednesday (deadline for so-called reciprocal tariffs)
Both letters say that the 25% tariffs are separate from additional sector-specific duties on key product categories
Letters also note: “Goods transshipped to evade a higher Tariff will be subject to that higher Tariff.”
The letters assert that the new tariff rates are necessary in order to correct for persistent US trade deficits w/ the 2 countries
US in 2024 had a
$68.5B goods deficit w/ Japan & only a Trade Balance deficit of
$11B
US in 2024 had a
$66B goods deficit w/ South Korea & Trade Balance Deficit of
$50.7B
Japan holds
$1.13T of US Treasuries & ranked as the #1 foreign holder of US Treasuries
South Korea holds
$1.21B of US Treasuries & ranked as #18 among foreign holder of US Treasuries
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