President Trump Announced News Tariffs For Japanese And Korean Cars

Unless you’re living under a rock, you should know by now that the US, under the leadership of President Donald Trump, is currently waging a trade war against other countries. The automotive market, among many other industries, is one of those heavily affected by the tariffs that America wants to impose on other nations. In fact, Japanese and Korean cars are now in danger of getting more expensive – if President Trump’s recently announced 25% tariff pushes through.

The tariff figure is set to become effective on August 1, 2025, Reuters reports. It was announced before the trade negotiations deadline on July 9, extending the time for the US and other countries to talk further. The 25% figure is a point higher than what the US wanted from Japan, but the same as what South Korea was given before. It is, however, not an addition to the current sectoral levies imposed on both countries, particularly on cars, steel, and aluminum.

President Trump Is Firm With 25% Tariffs

According to reports, President Trump is firm on the 25% tariff for Japan and Korea, “but not 100% firm.” The US government is still open to negotiations. However, he’s threatened both countries that the figure will increase if they retaliate with their own increased tariffs.

“If, for any reason, you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added on to the 25% that we charge,” President Trump said in the letter sent to Japan and South Korea, published on Truth Social.

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Japanese Prime Minister Shigeru Ishiba said that Japan will still work on negotiating with America, and claims that the 25% is progress compared to the 35% that President Trump suggested before. Meanwhile, South Korea reportedly plans to talk further, but claims any trade deal should include tariff exemptions or reductions for the auto and steel industries.

Automakers Are Trying To Dodge Additional Tariffs

Auto brands have been trying to find a solution to this problem. While some of the Japanese and Korean brands already have a manufacturing presence in the US, a huge chunk of their lineups are still imported into the country. One example would be Toyota, which has the Toyota RAV4 as its bestseller in America. Only the hybrid RAV4s are made locally, which means the others, which are made in Canada and Japan, won’t be exempted from the additional tariffs.

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Honda is another, with the many Civic units sold in the US being made in Japan and Canada. A solution is reportedly in place for this, but no concrete step has been taken yet. Then, there’s the matter of imported parts, which could also affect pricing since they will not be exempted despite the vehicle being built in America. There are studies that show how American-made a car is based on the components used.

Source: Reuters