Trump Threatens 25% Tariffs on South Korea and Japan

New York, NY, July 8, 2025-"Stocks fell Monday after President Trump renewed trade tensions with a range of countries while extending a deadline on so-called reciprocal tariffs to August 1,” reports the Wall Street Journal.

South Korea accounts for 5.4% of flooring imports to the U.S. with $559 million in resilient and $67 million in tufted carpet, according to Market Insights, while raw materials used to make LVT, such as film, are imported from Japan.

“Major indexes opened lower, with declines accelerating after the U.S. announced 25% tariffs on goods from Japan and South Korea. A dozen more nations from Laos to Serbia received similar notifications, which were posted on Trump’s Truth Social platform Monday afternoon.

“Trade levies had been scheduled to be reimposed Wednesday for dozens of countries, before the deadline was extended to Aug. 1. Trump wrote that if Japan, South Korea and other countries made adjustments to their trade practices with the U.S., then the tariff rate could come down or go up depending on the results.

“Earlier, Trump also threatened an additional levy on countries aligning themselves with the Brics group of emerging economies, which includes China and India.

“Shares of trade-sensitive companies such as Lululemon, Estee Lauder and Deere declined 2% or more. The dollar gained and the ten-year Treasury yield rose.

“‘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,’ Trump said.

“His post came as leaders of the Brics nations met in Rio de Janeiro. Over the weekend, the group released a statement voicing ‘serious concerns about the rise of unilateral tariff and non-tariff measures.’

“Talks between the U.S. and many key trade partners remain in flux. The European Union is aiming for an agreement in principle by Wednesday, when Trump had threatened to raise tariffs for EU imports to 50%.”