Washington: U.S. President Donald Trump stated that the United States has achieved favorable outcomes in trade discussions with South Korea, Japan, and the European Union, attributing these successes to the leverage provided by his administration's tariffs. Trump expressed optimism about reaching a "fair" trade agreement with China in the near future.
According to Yonhap News Agency, Trump made these comments during a Rose Garden Club event, where he confirmed plans to meet Chinese President Xi Jinping during his visit to South Korea for the Asia-Pacific Economic Cooperation (APEC) meeting in Gyeongju on October 31 and November 1. The anticipated meeting comes amidst heightened tensions, following China's recent decision to tighten export controls on rare earth elements and Trump's announcement of an additional 100 percent tariff on Chinese imports, effective November 1, alongside export controls on critical software.
Trump highlighted the effectiveness of tariffs in securing trade agreements, stating, "We've done well with Japan, with South Korea, with Europe ... The European nations got together (and) we made a deal. Without the tariffs, you could have never made the deal." He emphasized that tariffs have been instrumental in attracting foreign investments, reducing trade deficits, supporting domestic manufacturing, and increasing federal revenue.
The President expressed confidence in the forthcoming negotiations with Xi, noting that China's interest in discussing the 157 percent tariff demonstrates the impact of his tariff policies. Trump reiterated his positive relationship with Xi and his intentions to secure a mutually beneficial trade agreement, saying, "I expect to be able to make a good deal with him, and ... I want him to make a good deal for China, but it's got to be fair."
In July, South Korea reached a framework trade agreement with the Trump administration, influenced by the threat of significant "reciprocal" tariffs. The agreement involved reducing reciprocal tariffs on Korean goods from 25 percent to 15 percent in exchange for South Korea's commitment to a $350 billion investment in the United States, among other pledges. However, the deal is yet to be implemented due to ongoing discussions on how to execute South Korea's investment commitments.