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US President Donald Trump officially notified South Korea on July 7th (local time) that he would impose a 25% reciprocal tariff on all Korean products starting August 1st. This measure comes after trade negotiations between the US and South Korea, which have been ongoing since April, failed to reach a conclusion, and is expected to have significant impact on the Korean economy and export industries. Key Details of Trump's Tariff Letter President Trump released a letter addressed to President Lee Jae-myung through his social media platform Truth Social. In the letter, Trump stated, "Our relationship has unfortunately been far from reciprocal," and announced that "starting August 1, 2025, we will impose a 25% tariff on all Korean products coming to the United States." This tariff rate is identical to the 25% reciprocal tariff announced by President Trump on April 2nd. While Korea had received a 90-day grace period to conduct negotiations, the failure to rea...

Trump Tariff Ultimatum President Donald Trump has sent an official letter to Korea announcing a 25% mutual tariff on all Korean imports, scheduled to take effect on August 1st. This development marks a significant escalation in US trade policy, affecting Korea along with Japan and at least 12 other countries. Extended Deadline Provides Breathing Room The tariff implementation date was extended from the original July 9th deadline to August 1st, providing Korea with approximately three weeks to negotiate. Trump stated that the 25% rate is actually a low number considering the trade deficit the US has experienced with Korea. Korean Government Response The Korean presidential office assessed that they had avoided the worst-case scenario in tariff negotiations. Policy Chief Kim Yong-beom emphasized that while prompt consultation is important, protecting national interests remains ...

President Donald Trump has sent tariff warning letters to major countries including South Korea, announcing a 25% tariff to be imposed starting in August. This trade policy shock is creating ripple effects across the global economy, raising concerns about its impact on South Korea. Economic Ripple Effects Trump's tariff policy extends beyond simple trade conflicts, potentially leading to global inflation deterioration and upward pressure on interest rates. Experts warn that "tariff increases by the hegemonic United States will reduce global trade volumes, leading to GDP decline and economic growth slowdown." The strengthening dollar is intensifying won weakness. The won-dollar exchange rate rose to 1,370 won during Tuesday trading, showing instability. The Bank of Korea's New York office has suggested that the tariff policy's impact on the US economy may be prolonged. Corporate Response Strategies Korean companies are already reviewing various counterm...