How do tariffs and global trade wrangling reshape economic reality? A summer of tariff drama has left its mark from Seoul to Tokyo to US wallets. South Korea’s August exports slowed sharply, rising just 1.3% year-over-year—well below forecasts—after US-bound shipments plunged 12% as President Trump’s new 15% tariffs kicked in. Meanwhile, Japan’s trade talks with the US unraveled over demands to buy more American rice, with Japanese negotiators refusing to cut tariffs on farm products and slamming the process as an interference in domestic affairs.
For Asian export powerhouses—long considered bellwethers—the new tariffs inject deep uncertainty:
- South Korean auto, steel, and machinery exports to the US fell sharply
- Japan’s $550 billion US investment package held up as negotiators demand clarity on reciprocal tariff cuts
Expect more government intervention ahead, as Seoul’s finance chief signals imminent policy measures to cushion tariff-affected sectors.
