President Trump Levying New Tariffs
President Donald Trump announced that the U.S. will impose 25% tariffs on goods from Japan and South Korea, and a 50% levy on Brazil, effective August 1st. As well as threatening a 35% tariff on some Canadian goods.
This decision marks the beginning of a new wave of tariffs aimed at countries that have yet to secure trade deals with the Trump administration from the April 2 Liberation Day tariffs. The announcement was made through a series of posts on Trump’s Truth Social platform, which included screenshots of letters sent to Japanese Prime Minister Ishiba Shigeru and South Korean President Lee Jae-myung, among others.
The letters say, "If you wish to open your heretofore closed Trading Markets to the United States, eliminate your tariff, and Non Tariff, Policies and Trade Barriers, we will, perhaps consider an adjustment to this letter," and "If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge..."
This move comes as part of Trump's broader push to overhaul U.S. trade policies in his second term. The new tariffs follow a 90-day reprieve that allowed both Japan and South Korea to negotiate with the administration, after which the original duties of 24% on Japan and 25% on South Korea were reduced to 10%. Despite these temporary reductions, the two nations now face an increase back to the full 25% rate, as Trump presses for better trade terms.
Other Countries Who Received Letters Include:
Trump also announced on Truth Social that he would be leveraging an additional 10% on BRICS nations (Brazil, Russia, India, China, and South Africa) after they issued a joint statement expressing concern about the way a unilateral tariff would affect the global economy. Trump write that, "Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy.”
President Trump followed up with a letter to Luiz Inácio Lula da Silva, Brazil’s president. President Trump mentioned the country’s trade policies and its treatment of Jair Bolsonaro, the hard-right former president who is on trial for an alleged coup attempt. The Trump administration had been planning to keep Brazil’s reciprocal rate at the baseline 10%, before announcing an increase to 50%. Trump is seeking to halt criminal proceedings against his right-wing ally in the country, former President Jair Bolsonaro. In response to Trump’s letter, da Silva wrote Wednesday that Brazil would respond with reciprocity, without giving further details.
President Trump concluded these new tariffs by stating that the U.S. will put a 35% tariff on imports from Canada effective Aug. 1, up from 25% previously. Exemption for goods that comply with the nations’ free-trade agreement would still apply. In another letter to Canada’s Prime Minister Mark Carney, Trump cited the fentanyl crisis, among other issues, as the reason for the rate increase.