Official Letter Addressed to President Lee
"To Be Imposed on August 1... Separate from Item-Specific Tariffs"
Three Weeks Left for Negotiations... All-Out Effort to Lower Tariff Rate
On July 7 (local time), U.S. President Donald Trump announced that starting August 1, all South Korean products would be subject to a 25% reciprocal tariff. This rate is the same as the tariff rate announced in April. For the South Korean government, this means it faces a critical challenge: it must do everything possible in the remaining three weeks before the tariff takes effect on August 1 to lower the tariff rate through last-minute negotiations with the United States.
On this day, President Trump disclosed an official letter addressed to President Lee Jaemyung via his own social networking service, Truth Social. He stated, "Our current relationship is far from reciprocal," and added, "We will impose only a 25% tariff on all South Korean products sent to the United States starting August 1, 2025."
He further emphasized, "This tariff is separate from all item-specific tariffs." The United States is already imposing a 25% item-specific tariff on imported automobiles and auto parts, and a 50% tariff on steel and aluminum.
The 25% reciprocal tariff is identical to the 25% tariff President Trump announced on April 2 for South Korea. President Trump has been conducting trade negotiations by imposing different reciprocal tariffs by country, while applying a 90-day grace period for all tariffs except for the basic 10% tariff. With the grace period set to expire at 12:01 a.m. on July 9, he reiterated his warning that if a new trade agreement between South Korea and the United States is not reached, a 25% tariff will be imposed starting August 1.
He asserted, "We must move toward a more balanced and fair trade relationship," and claimed, "The 25% figure is much lower than what is needed to close the trade deficit gap with your country." He also mentioned the possibility of South Korea imposing retaliatory tariffs against the United States, warning, "If your country decides to raise tariffs, the increase will be added to the 25% U.S. tariff."
Additionally, President Trump stated that if South Korea attempts to circumvent the tariffs by transshipping goods through a third country, even higher tariffs would be imposed.
President Trump explained, "Please understand that this tariff is necessary to adjust South Korea's tariffs, non-tariff measures, policies, and trade barriers that have led to an unsustainable trade deficit against the United States," and added, "Such a deficit poses a truly significant threat to our economy and national security."
He concluded by stating, "If you are willing to open your previously closed trade market to the United States and remove your tariffs, non-tariff measures, policies, and trade barriers, we may consider adjusting the terms of this letter," adding, "This tariff may be adjusted upward or downward depending on the relationship between your country and ours."
As a result, it appears that South Korea will have to make every effort in last-minute trade negotiations with the United States during the remaining three weeks before the new tariff rate takes effect on August 1, in order to achieve a reduction in the tariff rate.
President Trump also sent a letter to Japanese Prime Minister Shigeru Ishiba, notifying Japan of the imposition of a 25% reciprocal tariff. In April, he had proposed a 24% reciprocal tariff rate for Japan, but this time he raised it by one percentage point.
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