President Donald Trump plans to impose a 25 percent tariff on goods imported from South Korea and Japan. The levy will go into effect on August 1st, which is when the Trump administration will begin enforcing sweeping tariffs on a wider swath of countries that fail to reach a trade agreement with the US.

U.S. stock markets reacted negatively on Monday after President Trump announced via social media that he would unilaterally impose 25% trade tariffs on Japan and South Korea. The tariffs target two of America’s closest allies and key suppliers of autos, electronics, and steel.

President Donald Trump on Monday set a 25% tax on goods imported from Japan and South Korea, as well as new tariff rates on a dozen other nations that would go into effect on Aug. 1. Trump provided notice by posting letters on Truth Social that were addressed to the leaders of the various countries.