by Daniel Brouse
July 7, 2025
Trump has announced via social media that all imports from Japan and South Korea will face an additional 25% tariff starting August 1, which will be stacked on top of all existing sectoral tariffs already in place. This means goods such as automobiles, steel, aluminum, and electronics from these countries will now face significantly higher costs for U.S. importers and consumers, adding further pressure on supply chains and prices across multiple sectors. Additionally, tariffs of 25% will be applied to Malaysia and Kazakhstan, while South Africa will face 30% tariffs, and Myanmar and Laos will see 40% tariffs.
Existing Auto Trump Tariffs
Under the Trump administration, a 25% tariff on imported automobiles and auto parts was introduced, citing “national security concerns.” This applies to:
- Passenger vehicles
- Light trucks
- Engines, transmissions, and key components
With the additional 25% tariff stacking on top of this, the effective tariff on Japanese and Korean cars and parts would jump to 50%, functioning as a hidden sales tax on American consumers.
Real-World Example: Importing a Car from Japan
If you were to import a $30,000 Toyota Corolla:
- Current 25% tariff: $30,000 × 0.25 = $7,500 → $37,500
- New 25% tariff: $37,500 × 0.25 = $9,375
- Total cost: $30,000 + $7,500 + $9,375 = $46,875
That’s a 56% increase on the original cost, making imported vehicles unaffordable for many American families.
Steel and Aluminum Tariffs: Now at 50%
In late May, the Trump administration announced at a Pittsburgh rally that tariffs on steel and aluminum imports from Japan would increase to 50%. Previously, these imports faced a 25% tariff under Section 232, which was doubled under current policy.
South Korea, which had temporary quota-based exemptions, had its 25% steel tariffs reimposed in March, adding further strain to industries reliant on these imports.
Real-World Example: Importing Steel from Japan
Imagine importing $100,000 worth of steel from Japan under the current Trump term:
Existing 50% sectoral tariff (steel/aluminum):
$100,000 × 0.50 = $50,000
Subtotal: $150,000
New 25% general import tariff (stacked on top):
$150,000 × 0.25 = $37,500
Total import cost:
$150,000 + $37,500 = $187,500
This means a $100,000 steel order now costs $187,500, an 87.5% increase due solely to tariffs.
forcing higher costs down the supply chain and into consumer prices.
Wider Economic Impacts: A Blow to U.S. Exceptionalism
These tariffs:
* Act as a hidden tax on American consumers
* Fuel inflation in key sectors (automobiles, construction, manufacturing)
* Disrupt supply chains while offering no clear economic advantage
* Undermine trade relationships with key allies, risking retaliatory tariffs
* Contribute to declining U.S. economic exceptionalism by raising costs and damaging credibility in global markets
While touted as protecting American jobs, these tariffs ultimately raise prices for American families and businesses while destabilizing an already fragile economic system under high deficits and rising interest rates.