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2025-07-08 Home Front: Politix
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Trump bets big on new tariff deals as deadline to price spike 'doomsday' approaches
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[Daily Mail, where America gets its news] Trump slaps 25% tariffs on Japan and South Korea in big gamble as deadline to price spike 'doomsday' approaches
President Donald Trump hammered Japan and South Korea for running up a trade imbalance with the U.S., declaring both countries will be slapped with a new 25 percent tariff starting August 1.
Trump issued a scathing attack in two letters he sent the leaders of both countries, declaring 'our relationship has been, unfortunately, far from reciprocal.'
Then he brought down the hammer, declaring what the new tariff would be, which could cripple the economies of two allies of the U.S.
The president did admit there will be some room for negotiation at the end of his note and indicated the tariffs won’t take effect until next month.
‘Starting on August 1, 2025, we will charge Korea a tariff of only 25% on any and all Korean products sent into the United States, separate from all sectoral tariffs,’ Trump wrote South Korean President Lee Jae-myung.
He said the rate was ‘far less than what is needed to eliminate the trade deficit disparity we have with your country,’ and said any effort to evade the tariff would be met with swift consequences.
Markets immediately dropped on the news, with the Dow Jones Industrial Average shedding 400 points, and the broader S&P 500 losing nearly a percentage point in value.
Trump concluded with another threat: ‘If for any reason you decide to raise your tariffs, then, whatever then number you choose to raise them by, will be added onto the 25% that we charge,’ he wrote.
Trump laced the unusual letters with compliments as well as digs, calling it a privilege for the countries to get to trade with the U.S.
Trump called the letter a ‘great honor’ and said it ‘demonstrates the strength and commitment' of the trading relationship between the countries 'despite having a significant trade deficit.'
Trump’s letter to Japan’s PM Ishiba Shigero appeared to use identical language, inviting Japan to participated in the ‘extraordinary’ U.S. economy through trade, even as its exports are subjected to the tariff.
Both countries are key U.S. allies.
The U.S. helped rebuild both economies after World War II and after the Korean War through extensive trade ties. For years U.S. consumers and companies have turned to both countries for automobiles and consumer products as well computer chips and technology vital to an array of other products.
The U.S. ran a trade deficit with Korea of $66 billion last year, according to the office of the U.S. trade representative.
That figure reflected US purchases of Korean cars, microchips. The U.S. faced a $67 billion trade deficit with Japan, the world's fifth largest economy.
Japan already faced a 25 percent tariff on cars, auto parts, and steel, in addition to facing the 10 percent across the board tariff.
White House Press Secretary Karoline Leavitt had an aide bring Trump's letters to the White House briefing room minutes after Trump sent them.
She told reporters Trump would sign an executive order 'delaying the July 9 deadline to August 1' – calling Trump's latest move a delay rather than merely a date when the tariffs would take effect. 
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Posted by Skidmark 2025-07-08 00:00||
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