Published: 2025-07-07T17:02:45.000Z
USD, JPY flows: USD firmer after Trump announces 25% tariffs for Japan and Korea
Senior Economist , North America
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Trump's announcement of 25% tariffs on Japan and South Korea has the USD generally firmer, though impact on USD/JPY was modest.
The announcement effectively promises a return to April 2 tariff levels on August 1, and it is far from certain that will prove to be the eventual outcome with the July 9 deadline losing its significance. The USD is however firmer generally with risk that other countries, notably the the EU, could be next in the firing line and US inflationary risks reinforced. Then KRW took a bigger hit than an already weak JPY.
