Korean Air reported on Friday a fall of 4% in cargo revenue for the second quarter of its financial year, pointing to market volatility stemming from U.S. tariff policies. South Korea's largest airline is also one of Asia's largest cargo carriers and has benefited in recent years from rising volumes of e-commerce out of China.

Asia-Pacific markets are set to trade mixed on Thursday after U.S. President Donald Trump announced that the U.S. will slap a 50% tariff on Brazilian imports beginning August 1.

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.

South Korea said it planned to intensify trade talks with the United States and considered U.S. President Donald Trump's plan for a 25% tariff from August 1 as effectively extending a grace period on implementing the duties.

The U.S. will put in place a 25% tariffs on imports from Japan and South Korea starting on Aug. 1, according to letters posted by President Donald Trump on his social media platform on Monday. Trump already delayed the high tariff rates against dozens of U.S. trade partners that he rolled out on April 2 until Wednesday.

Trump said on Tuesday that South Korea should be paying for its own military protection, suggesting the US ally needed to pay more for the US troop presence there, a day after the tariff announcement.

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.