Washington: U.S. President Donald Trump announced that his administration is set to introduce new tariffs on cars "very shortly" and on pharmaceuticals "in the not-too-distant future." During a Cabinet meeting, Trump highlighted the necessity for the U.S. to bolster its manufacturing capacities in preparation for potential conflicts or emergencies.
According to Yonhap News Agency, President Trump's comments come as South Korea braces for the possible ramifications of these planned tariffs on its export-driven economy. Trump stated, "We will be announcing (a tariff on) cars very shortly, and we already announced steel, as you know, and aluminum. We will be announcing pharmaceuticals at some point in the not-too-distant future because we have to have pharmaceuticals."
The President emphasized the importance of domestic production of essential goods such as steel, aluminum, and pharmaceuticals, particularly in scenarios like wars or other crises. "We need a lot of these things that we sort of don't make anymore and yet, we're equipped to do it all," Trump noted. "So, we'll be announcing some of these things in the very near future, not the long future, the very near future."
Trump reiterated his stance that the United States has been exploited by other nations, claiming that America has been "ripped off by every country in the world, friend and foe." He also remarked, "We were taken advantage of like nobody's ever seen."
The administration's use of tariffs aims to stimulate domestic manufacturing, reduce the U.S. trade deficit, and tackle issues such as illegal immigration and drug trafficking. South Korea, among other countries, is preparing for the introduction of sectoral and "reciprocal tariffs," scheduled for rollout on April 2. These reciprocal tariffs will consider trading partners' tariff and non-tariff barriers, as well as additional factors like exchange rates.