Trump Slaps 25% Tariffs on Japan and South Korea – Now Markets and Allies Are Pushing Back
The US president also signed and sent off letters today to several countries including two major trading partners. Far president is threatening to raise the tariffs on Japan and South Korea if they reciprocate with levies of their own. On July 7th, President Donald Trump announced that formal letters had been sent to Japan and South Korea. Starting August 1st, all exports from these countries into the United States would face a 25% tariff. These weren’t routine policy updates. They were public warnings delivered through Truth Social, meant to pressure. And while aimed at securing trade concessions, the impact has been deeper, shaking alliances, markets, and America’s global credibility. This would be 25% tariffs on all Japanese and South Korean exports into the US effective on August 1st. Saying, quote, “These tariffs may be modified upwards or downwards depending on our relationship with your country.” is that there is no certainty. Japan and South Korea are not just trade partners. They are cornerstone allies economically, strategically, militarily. Yet, the letters treated them no differently than geopolitical rivals. The 25% tariff matches the reciprocal rate framework Trump introduced on April 2nd. South Korea had already faced this rate. Japan was at 24%. Now both face the full increase starting August 1st unless they open their markets to US goods. Markets reacted swiftly. On July 7th, Nissan’s stock fell 5%. Toyota dropped 1.25%, Honda 1.5%. US indices also dipped. Dow, NASDAQ, and S&P 500 all fell about 1%. This wasn’t about numbers alone. It was about trust. And trust, once broken, is difficult to rebuild. America’s Asian alliances are now under strain, not because of war, but because of a letter. The White House insists this is a calculated strategy, a show of strength, a negotiation tactic. The tariffs, they say, are conditional. If Japan or South Korea retaliate, the rates will rise further. If they open up, they might come down. But here’s the catch. Behind the scenes, Treasury officials admit there’s not enough bandwidth to negotiate one-on-one with over 100 countries. Many, especially smaller economies, will simply face blanket tariffs between 10% and 25% regardless of context. Trump’s executive order signed July 7th pushed the original July 9th tariff deadline to August 1st. It gave more time, but not more clarity. The administration’s plan for customized deals for every country sounds powerful on paper, but without capacity to follow through, it risks becoming a chaotic patchwork of threats with no structure. And this uncertainty, what happens if deals don’t materialize, is exactly what markets and foreign leaders fear. This isn’t targeted protectionism, it’s tariff diplomacy by pressure, and it’s backfiring. With negotiations already underway, Canada wasn’t among the countries that received a tariff letter. That’s because it’s already deepened trade talks with the US with a deadline set for July 21st. Canada’s recent withdrawal of its digital services tax opened the door to dialogue, but Prime Minister Mark Carney hasn’t conceded further. Instead, Canada is quietly preparing domestic support packages, especially for its aluminum industry, which is still facing US tariffs of up to 50%. Ottawa isn’t reacting emotionally. It’s planning strategically, holding the line until the US either offers a reasonable deal or overreaches. Then there’s China. For now, Beijing hasn’t received a new tariff letter. The United States and China remain under a temporary tariff truce through mid August, but you know, officials in Beijing are watching closely. By fracturing United States relationships with Japan and South Korea, Trump may actually be doing China’s work for them. Beijing isn’t rushing to escalate. Instead, it’s likely positioning itself to benefit from any lasting rift in the United States Asia alliance system. Trump’s letter may not have shocked China, but it certainly interested them. Trump’s tariff letters are meant to force deals to show strength. But honestly, they’ve exposed a different reality. Japan and South Korea, once among America’s most reliable allies, are now bracing for economic penalties from the very country they’ve supported for decades. Canada is quietly resisting. And China so far is playing the long game, just waiting for divisions to deepen. America still holds the cards. But, you know, diplomacy built on pressure alone doesn’t just fail to persuade. It pushes partners away. And in a world where alliances matter more than ever, these letters may end up isolating the United States one ally at a time. Yesterday, President Trump criticized the bricks for promoting anti-US policy and threatened to impose 10% tariff hikes on them. The bricks are now emerging as really the only global forum that can stand up to Trump’s trade war. Yesterday, President Trump criticized the bricks for promoting anti-US policy and threatened to impose 10% tariff hikes on them. The bricks are now emerging as really the only global forum that can stand up to Trump’s trade war. In the middle of an unfinished trade truce with China, President Trump has opened a new front. With his August 1st global tariff deadline approaching, he’s now threatening to impose a 10% tariff on any nation that aligns with bricks, the economic block led by China alongside Brazil, Russia, India, and South Africa. It’s a broad, blunt move. And while it’s meant to box China in, it may be doing the opposite because instead of lashing out, Beijing is choosing something more subtle and potentially more powerful. Back in June, President Trump declared that a trade deal with China was signed and sealed. But weeks later, no detailed agreement has surfaced. The only thing both sides confirmed was a temporary truce, a 90-day pause on escalating tariffs set to expire in mid August. Instead of focusing on finishing that deal, Trump has expanded the fight. On July 7th, he warned that any country linked to bricks policies, including using non-dollar currencies, building alternative supply chains, or participating in infrastructure cooperation, could face new US tariffs. This message directly impacts countries like India, Indonesia, and Brazil, nations that aren’t anti-American, but are part of BRICS Plus. It’s a sweeping threat that risks alienating both rivals and strategic trade partners. And once again, Trump is using tariffs not just as economic leverage, but as a way to force countries to pick a side and threaten to impose 10% tariff hikes on them. What’s your comment? BRICS is an important platform for cooperation among emerging markets in developing country and cooperation. It is not a block for confrontation, nor does it targets any country. On the US tariff hikes, China has made its position clear more than once. Trade war and tariff war have no winners, and protectionism leads nowhere. So, China has not responded with counter tariffs. Instead, its foreign ministry chose careful deliberate messaging. Beijing emphasized that bricks is an open cooperative platform, not a political alliance aimed at anyone. It said, you know, tariff wars have no winners and that using trade as a weapon would backfire on everyone. At the same time, China is strengthening its position through diplomacy and long-term investment. Over the past month, Chinese foreign minister Wong Yi held highle meetings in France and Germany. The focus was on green energy, multilateral cooperation, and strengthening trade outside the dollar system. Projects like the Dabai nuclear plant, solar installations in Greece, and joint energy infrastructure in Germany are all part of a wider push. It’s Beijing’s quiet answer to tariff pressure, create more partners, not more enemies. Meanwhile, within bricks, China is expanding local currency trade, but doing so without direct confrontation. Countries like India have clarified they’re not abandoning the dollar even as they conduct more rupee transactions. It’s a strategic shift. Rather than escalate, China is reframing bricks as a development first block, winning sympathy from the global south while Trump’s threats grow broader and harder to enforce. Makes sense. So it’s very hard to make sense of Trump for companies. Companies cannot invest if they feel there is deep uncertainty about the future economic environment. And what Trump is doing is creating a lot of uncertainty, not only for companies, but also for countries. So Trump’s tariff warning may look strong, but there are uh three big risks. First, it’s vague. Bricks aligned isn’t defined in law. It’s honestly unclear what level of cooperation actually triggers tariffs. And that kind of uncertainty really spooks market. Second, it uh alienates neutral partners. India and Brazil both want trade with the US, China and the EU. Threatening them for participating in multilateral groups. Well, it actually pushes them closer to Beijing, not further away. Third, and most importantly, it gives China a messaging advantage by staying calm, presenting itself as a responsible economic power and avoiding retaliation, Beijing now looks like the adult in the room, especially to European and developing nations. And all this is happening while, you know, the US China truce remains unresolved. If no final agreement is reached by mid August, a new wave of tariffs could, you know, crash into already fragile supply chains. This isn’t just another trade dispute. It’s actually a deeper confrontation between two world views. Trump believes power comes from pressure, tariffs, deadlines, and demands. China, by contrast, is betting on patience, diplomacy, and building alliances, one project at a time. But there’s a risk in Trump’s approach. In trying to isolate China, he may honestly be isolating America. And by turning tariffs into a global loyalty test, he’s forcing countries to rethink who they can trust. As the clock ticks toward August 1st, the question isn’t whether China will retaliate, it’s whether it even needs to. When the person you’re dealing with or the country you’re dealing with has multiple objectives, it jumps around a bit and uh you’ve got to be nimble if we do see some trade deals coming through. Obviously, with our country, uh that would be, I think, a big boost. President Trump has set the clock ticking toward August 1st, the day when his new global tariff framework kicks in with import taxes of 10% to 70% for countries that don’t sign trade deals in time. And while many governments are scrambling to meet the deadline, one country has taken a different path, Canada. In this final stretch, with pressure mounting and time running out, the world is watching whether Prime Minister Mark Carney will bend to Trump’s demands or make the most calculated gamble of his career. With tariffs looming, markets rallied on hope. Wall Street bet that Canada would fold quickly, just like others had, and Trump had already declared his intent. If a deal wasn’t reached by July 21st, tariffs would rise automatically. No more grace periods, no more backroom extensions. And yet, Canada didn’t fold. No major concessions were announced, no dramatic press conferences, no movement at the podium. Instead, there was a calm, strategic silence. The usual Trump playbook, high pressure, short timeline, visible chaos, was met with something unexpected. Restraint. Investors kept waiting for news. Business leaders, especially those in steel and automotive supply chains, feared the worst. But from Ottawa, the only response was stillness. Carney’s approach emphasized how Canada can help the White House on China, on balance of trade issues, on protections for workers, and on border security. Behind that silence was Prime Minister Mark Carney, a former central banker. Carney wasn’t looking to play by Trump’s rules. Instead of bargaining point by point, he shifted the game entirely. At the Calgary Stampede, Carney addressed Albertans directly, not just with words, but with strategy. He called on Canadians to focus inward on housing, on clean energy, on rebuilding economic independence. He knew what Trump wanted, quick wins, bold headlines. But Carney wasn’t playing for the moment. He was playing for stability. Rather than debating dairy quotas or aluminum percentages, Carney brought something different to the table. Value. Canada, he argued, could help the US where it mattered. On trade with China, on labor protections, on border security. This wasn’t just a defense. It was a repositioning, a way to say, “We’re not your opponent. We’re your ally in a bigger fight.” And it started working. Markets across North America responded with optimism. The TSX and S&P 500 both hit record highs during the first week of July. According to Bloomberg, much of that optimism stemmed from perceived progress in the US Canada talks, especially after Canada stepped away from the digital services tax that had angered Washington. But that optimism might have been premature because while Trump’s team expected a full deal by July 21st, Carney wasn’t rushing. The days ticked down. Trump grew louder. But Carney remained still. And that’s when Trump faced a problem he hadn’t planned for. What happens when the pressure doesn’t work? If Canada holds firm past July 21st, Trump must make a decision. Either follow through with punishing tariffs, which could trigger job losses across border states, or back down and risk looking weak, reach a deal, and you know, I just wonder what what you think about what messaging should be going out to Canadians in a moment that seems precarious. But of course, we don’t really know. I think folks are just hoping to hear from their prime minister and from Canadian officials that they’re on it and that they’re doing everything they can and that they have Canadians back. The economic stakes are real. Canada’s services PMI fell to 44.3 in June according to S&P Global, well below growth thresholds. US companies, especially in auto parts and logistics, are already cutting forecast due to uncertainty over crossber flows. Both economies would suffer, but politically Carney has space to wait. Polls show Canadians understand the stakes and the personality across the table. Trump, on the other hand, has no such room. His trade narrative depends on fast, visible wins. Delays don’t just cost time, they cost credibility. In this trade standoff, Trump has the microphone, but Carney holds the clock. The louder Trump pushes, the more his own deadline becomes a trap. And the longer Carney waits, the more he turns Trump’s strength into a vulnerability. This isn’t about who talks more. It’s about who understands the moment better. And right now silence is speaking
Trump Slaps 25% Tariffs on Japan and South Korea – Now Markets and Allies Are Pushing Back
President Trump has officially announced 25% tariffs on auto imports from Japan and South Korea, set to take effect on August 1st. Global markets are rattled — with shares of major automakers like Toyota and Nissan sliding sharply. U.S. allies are stunned, Canada remains silent, and China is watching closely from the sidelines.
With over a dozen nations now under tariff threat, critics warn this move could fracture alliances and erode U.S. influence rather than strengthen it. In this video, we break down the global fallout, the high-stakes risks, and the unintended consequences of Trump’s most aggressive trade strike yet.
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On July 7th, President Trump escalated global trade tensions by announcing a 25% tariff on all exports from Japan and South Korea, effective August 1st. This bold move, delivered via Truth Social, sent shockwaves through markets and strained long-standing alliances. As nations scramble to adapt, Canada takes a unique approach, holding firm against pressure while negotiating strategically. The stakes are high, with potential economic fallout looming over both the US and its partners. What does this mean for international relations and trade dynamics? Dive into the complexities of Trump’s tariff turmoil and discover how countries are responding to this high-stakes game. Don’t forget to like and share this video!
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