Seoul: U.S. President Donald Trump has indicated his willingness to negotiate deals concerning "reciprocal" tariffs, provided the United States can secure favorable outcomes through such negotiations. This statement follows his administration's plan to implement tariffs designed to match the duties imposed by other countries on U.S. exports. The tariffs, set to be announced next Wednesday, will be tailored to each trading partner based on their respective tariff and non-tariff barriers, along with other considerations such as exchange rates.
According to Yonhap News Agency, Trump made these remarks aboard Air Force One, emphasizing the necessity of securing something beneficial in return for any negotiated deals. He expressed that while he is generally open to discussions, the United States has been taken advantage of for many years, a situation he is determined to change. Trump clarified that any potential deals would likely occur after the announcement of the tariffs, not before.
In addition to the reciprocal tariffs, Trump mentioned the forthcoming tariffs on pharmaceuticals, highlighting the importance of bringing drug manufacturing back to the U.S. He did not specify the tariff rates but hinted at a target that would incentivize pharmaceutical companies to return production to American soil. He underscored the need to avoid reliance on foreign countries for essential goods, drawing on the shortages experienced during the COVID-19 pandemic as a cautionary example.
South Korea is actively engaging in diplomatic efforts to circumvent the new U.S. tariffs, as concerns mount over its trade surplus with the U.S., which reached $55.7 billion last year. Trump's critical view of South Korea as a trading partner has fueled apprehensions in Seoul. During a recent address to Congress, Trump alleged that South Korea's average tariff rate is four times that of the U.S. South Korea countered this claim, stating its average tariff under the bilateral free trade agreement with the U.S. is less than 1 percent. While South Korea's average tariff on most-favored nations is approximately 13.4 percent, this rate does not apply to countries that have free trade agreements with Korea.