President Donald Trump has announced a steep increase in U.S. duties-a flat 25% tariff-on imports from both South Korea and Japan, effective August1, via letters shared publicly on Truth Social. The rate marks a return to his previous "reciprocal" tariff approach initiated in April: Korea faces a full 25%, while Japan sees a slight rise from the earlier 24%.

The letters warn that any retaliatory tariffs from Seoul or Tokyo will automatically be met with matching U.S. tariff increases. However, Trump leaves room for negotiation: reductions are possible if the countries open their markets or ease tariff and non-tariff barriers.

The escalation stems from persistent U.S. trade deficits-Korea ($66bn) and Japan ($68.5bn) being among the top bilateral imbalances. Agriculture is a key flashpoint: Trump has publicly criticized both partners for restricting American rice, corn, and soy exports, despite rising deficits in global staple markets.

Why this matters for U.S. farmers:

• Exports at risk: A 25% hike on autos, electronics, and, especially, agricultural goods could undercut U.S. farm exports and input costs.

• Crop insurance & supply chains: Rising duties may inflate input costs (fertilizer, machinery), tighten crop insurance margins, and disrupt established supply chains.

Policy context:
Trump's administration has already deployed sweeping tariffs-25% on steel and aluminum, a universal 10% levy, and up to 145% on Chinese goods under emergency powers. Legal challenges are underway: the U.S. Court of International Trade has already ruled parts unlawful, and an appeals process is underway.

Next steps:

• Negotiations continue through July, with the August1 start date acting as a deadline.

• South Korea's Trade Ministry has vowed to intensify talks; Japan signals regret but keeps the door open for compromise.

• Additional letters have been dispatched to more than a dozen countries, including emerging Asian, African, and European markets.