Washington: U.S. President Donald Trump unveiled plans to implement a 10 percent "baseline" tariff on imports from all foreign countries, alongside "reciprocal" tariffs, including a significant 25 percent duty on South Korean imports. The announcement aims to address America's trade deficits and support domestic manufacturing.
According to Yonhap News Agency, Trump revealed the new tariffs during the "Make America Wealthy Again" event at the White House Rose Garden. The baseline and reciprocal tariffs are set to take effect on Saturday and next Wednesday, respectively. The announcement was closely watched by South Korea and other U.S. trading partners, who are grappling with the growing list of tariffs from the Trump administration.
President Trump dubbed the day "Liberation Day," emphasizing its importance as a turning point for American industry and prosperity. He presented a chart outlining specific reciprocal tariffs for various countries, portraying them as "kind" and a matter of "common sense." The chart highlighted tariffs ranging from 10 percent for Britain to as high as 49 percent for Cambodia, all tailored based on each country's trade barriers and policies.
Trump criticized the trade barriers imposed by other countries, particularly non-monetary restrictions from South Korea and Japan. He pointed to the dominance of locally made cars in these countries as evidence of the barriers that have disadvantaged American industries.
Senior U.S. officials described the list of countries facing reciprocal tariffs as the "worst offenders," emphasizing the need for this new tariff regime to address what they perceive as unfair trade practices. They indicated limited opportunities for negotiation, stressing the importance of implementing the tariffs to protect U.S. economic security.
The announcement has raised concerns about the future of the Korea-U.S. Free Trade Agreement (FTA) and prompted expectations that South Korea might seek to renegotiate trade terms to address the U.S. trade deficit, which reached $66 billion last year. The tariffs mark an expansion of Trump's trade war, affecting more countries and products on a global scale.