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

Tokyo and Seoul were staring down the threat of 24% and 25% tariffs, respectively, before the president fired off the letters Monday.

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,