Global Tensions Rise as Trump Imposes Tariffs

U.S. President Donald Trump’s new 25% import tariffs on Japan and South Korea trigger diplomatic backlash from key allies and global trade partners.

July 08, 2025Clash Report

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U.S. President Donald Trump’s announcement of 25% tariffs on imports from Japan and South Korea, with even higher rates for other countries, has unleashed a wave of international criticism and economic concern. In letters to 14 nations, Trump warned that any retaliatory tariffs would result in proportional increases to the U.S. tariff rate.

“If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge,” Trump said, adding that the

U.S. President Donald Trump

Japan: “No Easy Concessions”

Japanese Prime Minister Shigeru Ishiba condemned the move as a sudden and damaging escalation.

“It is deeply regrettable that Trump announced a 25% tariff for Japan overnight. We will continue negotiations, but we will not make easy concessions,” Ishiba said.

Japanese Prime Minister Shigeru Ishiba

Japan’s chief trade negotiator, Ryosei Akazawa, stressed that auto tariffs remain a red line:

“Trump is very tough... There is no point striking a deal without agreement on auto tariffs. That’s the core of our economy.”

Japan’s chief trade negotiator, Ryosei Akazawa

South Korea Seeks Adjustments

South Korea’s Trade Minister Yeo Han-koo met with U.S. Commerce Secretary Howard Lutnick, calling for exemptions on steel and auto tariffs:

“Exemptions or reductions in auto and steel tariffs must be included in the trade deal.”

South Korea’s Trade Minister Yeo Han-koo

Seoul later affirmed its commitment to continued dialogue:

“We will step up trade negotiations to win mutually beneficial results and clear up uncertainties.”

South Korea’s Trade Minister Yeo Han-koo

EU Hopes for Last-Minute Deal

Following a phone call between Trump and European Commission President Ursula von der Leyen, Brussels remained cautiously optimistic.

“There was a good exchange. The EU still aims to reach a trade deal by Wednesday,” said a Commission spokesperson.

European Commission President Ursula von der Leyen

But German Finance Minister Lars Klingbeil warned of retaliation:

“If we don’t reach a fair trade deal with the U.S., the EU is ready to take counter measures.”

German Finance Minister Lars Klingbeil

Asia Pushes Back

Malaysia's Trade Ministry called for further clarification:

“We will continue discussions in good faith to clarify the scope and impact of the announced tariffs.”

Malaysia Trade Ministry

Meanwhile, Thailand’s Finance Minister Pichai Chunhavajira took to X (formerly Twitter) to deliver a bold message:

“We will not stop. We will continue to fight. We will find more measures and find more solutions.”

Thailand’s Finance Minister Pichai Chunhavajira

China: No Sacrifice of National Interests

An editorial in the Chinese Communist Party's People’s Daily warned nations against sacrificing Chinese interests in pursuit of U.S. tariff relief:

“China firmly opposes any side striking a deal that sacrifices Chinese interests in exchange for tariff concessions. We will respond resolutely.”

Chinese Communist Party

Global Alarm: “A Perfect Storm is Brewing”

Pamela Coke-Hamilton, Executive Director of the International Trade Centre at the UN, voiced deep concern:

“This move actually extends the period of uncertainty... undermining long-term investment. A perfect storm is brewing.”

Pamela Coke-Hamilton, Executive Director of the International Trade Centre

India Recalibrates Trade Strategy

India, not on the immediate tariff list, is already adjusting course. Officials revealed:

“India plans to source about 10% of its cooking gas imports from the U.S. starting in 2026, as part of broader trade realignment.”

Indian Trade Official

Sources:

Global Tensions Rise as Trump Imposes Tariffs