On July 7, 2025, the U.S. announced 25% tariffs on goods from Japan and South Korea, effective August 1 (Source: AP News, Reuters). This move, aimed at addressing trade imbalances, triggered market declines globally.
The Dow Jones fell by 1.2%, and the S&P 500 and Nasdaq also dropped. The U.S. had a $68.5 billion trade deficit with Japan and a $66 billion deficit with South Korea in 2024.
These tariffs follow previous trade actions, including the "Liberation Day" tariffs. Global markets are watching for potential retaliatory measures and further developments in international trade relations.