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.Trump provided notice of the tariffs to begin Aug.

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.

Japan, the fifth-largest source of US imports, had previously faced a temporary 24% tariff before the rate was lowered to 10% during a 90-day negotiation window. That window has now closed, and the full 25% tariff will go into effect.