Washington: U.S. President Donald Trump announced a temporary reduction in new tariffs on South Korea and other trade partners to 10 percent for a 90-day period, while simultaneously increasing tariffs on China to 125 percent following China's retaliatory actions.
According to Yonhap News Agency, President Trump made the announcement via social media, labelling the move as a "reciprocal" tariffs measure effective immediately. This comes after the U.S. administration recently announced tariffs of 25 percent on South Korea, 24 percent on Japan, and 20 percent on the European Union, among others. Trump indicated that more than 75 countries had initiated contact with U.S. officials, including the Department of Commerce and the U.S. Trade Representative, seeking negotiations without retaliating to the new U.S. tariffs.
In his statement, Trump emphasized the escalation in tariffs on China as a response to Beijing's decision to raise tariffs on U.S. goods to 84 percent. He underscored that the U.S. would no longer tolerate perceived economic imbalances and expressed hope for future negotiations with China.
Treasury Secretary Scott Bessent later elaborated on the 90-day pause, highlighting the administration's willingness to negotiate with countries to resolve trade barriers. Bessent affirmed that the new baseline tariff for willing countries would be 10 percent, while tariffs on China would increase due to its escalation tactics. He noted that initial tariff rates were set at "maximum levels," allowing room for negotiation, and announced that initial talks would likely involve China's neighbors, including South Korea, Japan, Vietnam, and India.
Bessent criticized China for its economic practices and denied that the situation amounted to a trade war, instead framing it as a necessary response by President Trump. He urged countries to bring their best offers in upcoming negotiations and reiterated the administration's strategy of using tariffs to correct trade imbalances, enhance domestic manufacturing, and increase federal revenue. The tariffs were tailored to each country's trade barriers and policies, U.S. officials explained.