South Korea's central bank held interest rates steady on Thursday, as policymakers steered a cautious path amid concerns about financial stability risks stemming from rising household debt and economic pressure from U.

The U.S. will impose tariffs of 25% on Japan and South Korea beginning on Aug. 1, President Donald Trump announced on Monday in posts on Truth Social.

On Monday, President Donald Trump announced 25% taxes on products from Japan and South Korea, in addition to the threat of higher potential tariffs on goods from those nations if they raise their tariffs on American goods.

The president has already threatened an additional 10% tariff on goods from countries aligning themselves with a bloc of nations that includes China and Russia.

Markets may be underpricing U.S. tariff risks as global trade tensions rise and currencies react. See why investors should prepare for post-July 9 volatility.