On Monday, the White House announced a 25% import tax on all goods from Japan and South Korea starting August 1. Other countries like Laos and Myanmar face even higher taxes.
Why it matters:
- Japan and South Korea hit hard: Japan’s car exports could be cut by 25%, impacting its economy.
- Market reaction: The S&P 500 dropped, while markets in Tokyo and Seoul were uncertain.
- No more grace period: The 90-day pause ends, and tariffs will jump unless a deal is made quickly.
Immediate impact:
- Higher costs for Japanese and Korean companies selling to the U.S.
- Potential shifts in supply chains, with Southeast Asia affected differently.
- Investor concern as markets react to uncertainty.
What to do now:
- Keep negotiating for deals before the deadline.
- Prepare for both tariff and “deal” pricing.
- Watch currency fluctuations to manage the impact.
- Communicate with investors about the changes ahead.
Big picture:
This move is more about leverage than the tariffs themselves. The U.S. is pushing Japan and South Korea to make concessions, with August 1 being the key deadline.
Your take: Does Japan or South Korea have room to concede? How will this move ripple through your sector? Let us know in comments.
Disclaimer: LinkedIn