President Trump on Monday placed a 25% tax on goods imported from Japan and South Korea, citing persistent trade imbalances with the two crucial U.S. allies in Asia.

The tariffs on two of America’s closest allies would go into effect Aug. 1, unless the countries reach some kind of trade agreement with the United States.

U.S. President Donald Trump threatened to add an additional 10 percent tariff to any country aligned with BRICS (Brazil, Russia, India, China, and South Africa) and then later threatened 25 percent tariffs as of 1 August on China, South Korea, and Japan, as his “liberation day” tariff pause is poised to expire on 9 July.