Washington: U.S. President Donald Trump on Wednesday announced a temporary reduction in tariffs for South Korea and other trading partners, lowering them to 10 percent for a 90-day period. This decision was made amidst rising tensions, as tariffs on China were increased to 125 percent in response to China's retaliatory tariff measures.
According to Yonhap News Agency, Trump took to social media to explain the move, which comes after his administration's recent imposition of tariffs on several countries, including 25 percent on South Korea, 24 percent on Japan, and 20 percent on the European Union. The president emphasized that the 90-day pause was to facilitate negotiations with over 75 countries that have approached U.S. officials, including the Department of Commerce and the U.S. Trade Representative, seeking a resolution without resorting to retaliation.
Trump highlighted ongoing tensions with China, criticizing Beijing's decision to raise tariffs on U.S. goods to 84 percent. "Based on the lack of respect that China has shown to the World's Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately," he declared.
Further elaborating on the decision during a press briefing, Trump noted that the temporary tariff reduction was a strategic move to calm growing concerns about the impact of tariffs. Treasury Secretary Scott Bessent echoed this sentiment, underscoring the administration's willingness to negotiate with countries to address trade barriers.
Bessent clarified that the U.S. tariffs aim to target "bad actors" and stated that the U.S. is prepared to engage in discussions with early candidates for negotiation, including South Korea, Japan, Vietnam, and India. He emphasized the opportunity for countries to negotiate down from the initially announced maximum tariff levels.
The secretary also criticized China for contributing to global trade imbalances and escalating tensions. He expressed confidence in reaching a solution through negotiations and urged countries to present their "best deal" in tariff discussions with the U.S.
The Trump administration has implemented country-specific tariffs in an effort to balance the trade landscape and protect domestic industries. These tariffs are tailored based on factors such as trading partners' tariff and non-tariff barriers and exchange rate policies, according to U.S. officials.