Trump Adds 25 Percent Tariffs On Goods from Japan, South Korea

President Donald Trump opted to impose 25 percent tariffs on imported automobiles in early April, and since then, has been working to negotiate trade deals with a wide variety of countries. Some of those talks have gone better than others, though in certain cases, tariffs have prompted automakers to increase the prices of at least some models – including Ford. Now, automakers are facing more pressure in that regard after Trump revealed new, 25 percent tariffs on certain goods being imported into the U.S. from Japan and South Korea.

According to Automotive News, Trump has announced that he will slap a 25 percent tariff on Japan and South Korea starting August 1^st, along with 25 percent levies on Malaysia, Kazakhstan, and South Africa, plus 40 percent on Laos and Myanmar. Since April, those rates have been capped at 10 percent as the sides work to negotiate new trade deals, but thus far, the administration has only reached agreements with Britain and Vietnam – though it’s reportedly close to hammering out deals with some other countries as well.

These tariffs are separate from the aforementioned 25 percent levies on imported automobiles and 50 percent on steel and aluminum, but still stand to impact the automotive industry in some ways. Imported parts that aren’t included on the list of components already subjected to tariffs are expected to be added to this new list, which include things like advanced driver assistance system components, brake parts, and door handles, to name just a few.

This news comes just a day after Toyota revealed that it would be willing to sell vehicles made by U.S.-based automakers like Ford and General Motors in Japan, an effort to help the country negotiate a better deal with the Trump administration. Additionally, European automakers have expressed interest in ramping up investments in the U.S. in exchange for reduced tariffs on that part of the world, but the EU is worried that such a move could divert investments and production away from the region.