US Imposes 10% Tariffs on Japanese Cars and 25% Steel Tariffs on Asian Trading Partners

Published on 5.21.25

  The US is demanding concessions from its Asian trading partners, including Japan and South Korea, in exchange for not implementing higher tariffs. The US has imposed a 10% tariff on cars and car parts, as well as a 25% rate on steel and aluminum, on Japan. Tokyo sees these measures as unfair and protectionist, and the two sides have been unable to reach an agreement. In contrast, South Korea is seeking a complete exemption from US tariffs in ongoing trade talks in Washington. Seoul has allocated funds for exporter vouchers and trade insurance to support its companies, while engaging in technical consultations with the US on tariff policy. Exports to the US have declined by 14.6% due to new tariffs on automobiles and other key items. The Asia-Pacific Economic Cooperation (Apec) grouping warns that exports in the region will barely grow this year due to US tariffs, with a projected increase of only 0.4%. This is a significant decline from last year's 5.7%, highlighting the impact of trade tensions on regional economies. The situation has led to increased support for export companies in South Korea, with the government prioritizing national interest and seeking mutually beneficial solutions through technical consultations with the US.

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