Trump imposes new tariffs on Japan, USDJPY surges 🟢

8:16 pm 7 July 2025

A sell-off on Wall Street intensified following President Trump’s recent comments posted on his Truth Social profile.

President Trump announced the implementation of a sweeping 25% tariff on all Japanese imports, effective August 1, 2025. The White House justified the decision by citing the long-standing trade imbalance between the U.S. and Japan and warned that goods routed through third countries would also be subject to the new tariff. Japanese firms manufacturing within the U.S. will be exempt from the new duties, though potential retaliatory tariffs from Japan could result in even steeper levies on Japanese products. Reports also suggest a similar letter was sent to South Korea, indicating the possibility of further tariff escalations.

Trump’s actions may be part of a negotiation strategy, given the approaching end of trade talks. However, this marks yet another trade escalation that the market had hoped to avoid. Following the announcement, U.S. Treasury yields rose across all maturities, USDJPY surged to session highs around 146.10, gaining 1.10%, and EURUSD fell below key technical support levels.

Major U.S. stock indices also posted declines.

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world.