South Korea said it planned to intensify trade talks with the United States and considered U.S. President Donald Trump's plan for a 25% tariff from August 1 as effectively extending a grace period on implementing reciprocal tariffs.

Trump has started telling the US’s main trading partners what tariff rate he will impose on their imports. First up is Japan and South Korea. Both countries will face 25% tariffs, which is a step up from the current 10% rate, and a blow for hopes that Trump would scale back tariff threats and de-escalate a trade war.

The yen fell on Tuesday as U.S. President Trump announced 25% tariffs on Japanese and South Korean goods, rattling markets. These tariffs, set for August, sent the yen and won downward. Investors face uncertainty amid trade discussions,