Washington: U.S. President Donald Trump announced plans Wednesday to impose a minimum 10 percent "baseline" tariff on all imports to the United States and "reciprocal" tariffs, including 26 percent duties for South Korea, as he seeks to reduce America's trade deficits and bolster domestic manufacturing.
According to Yonhap News Agency, Trump made the much-anticipated announcement on the baseline and reciprocal tariffs, which will go into effect at 12:01 a.m. on Saturday and at 12:01 a.m. next Wednesday, respectively, during the "Make America Wealthy Again" event at the White House Rose Garden. He declared a national emergency over America's "large and persistent" trade deficits and invoked the International Emergency Economic Powers Act of 1977 to address the issue through new tariffs.
South Korea and other countries on what the Trump administration called the "worst offender" list closely monitored the announcement, labeled by Trump as "Liberation Day." The tariffs have been a subject of concern as these nations navigate through the growing list of the Trump administration's trade measures. Trump described April 2, 2025, as a pivotal day for American industry and economic strategy.
With a chart showing individualized reciprocal tariffs, Trump portrayed the new duties as fair, stating that the U.S. will impose just half the rate each targeted country was supposed to pay. While the chart initially showed a 25 percent tariff for South Korea, a later update confirmed a 26 percent rate. The executive order annex also detailed tariffs for other nations, including 34 percent for China and 20 percent for the European Union.
The tariffs were customized based on trading partners' tariff- and non-tariff barriers, among other factors. Certain goods, such as steel, aluminum, automobiles, and key auto parts, are exempt due to existing industry-specific tariffs. Goods compliant with the U.S.-Mexico-Canada Agreement will continue to see a zero tariff.
Trump criticized foreign trade barriers and defended the new tariffs, pointing out non-monetary trade restrictions by countries like South Korea and Japan. He cited high domestic production rates for cars in these countries as evidence of trade imbalances.
In a briefing before the announcement, senior U.S. officials referred to the group of approximately 60 countries subject to reciprocal tariffs as the "worst offenders." They emphasized the focus on implementing the new tariff regime due to perceived unfair trade practices affecting U.S. economic security.
Some officials highlighted South Korea's most-favored nation tariff rates, which they claimed were significantly higher compared to the U.S.'s rates, despite Seoul's diplomatic efforts to address such perceptions.
The new tariffs signify an expansion of Trump's trade policy on a global scale, potentially impacting existing trade agreements like the Korea-U.S. FTA. South Korea, with a significant trade surplus with the U.S., may seek new negotiations to mitigate the impact of these tariffs.