Washington: White House National Economic Council Director Kevin Hassett has highlighted the United States' "persistent" trade deficits with South Korea, China, and Europe, attributing the imbalances to the countries' high tariffs and non-tariff barriers.
According to Yonhap News Agency, Hassett, in an interview with CNBC, cautioned that countries resistant to President Donald Trump's trade negotiations might face tariffs. The Trump administration is preparing to implement "reciprocal" tariffs tailored to each country's tariff and non-tariff barriers, as well as other factors such as exchange rate policies, starting April 2.
Hassett pointed out the long-standing trade deficits with Europe, China, and South Korea, suggesting that these are due to the barriers that hinder U.S. firms' ability to compete. He expressed optimism that many countries would respond favorably to Trump's trade negotiations, portraying the president as "flexible."
However, Hassett acknowledged that some countries might not adjust their trade practices. "The countries that don't are going to have to pay the tariffs. That's the way it is," he stated. This warning comes as South Korea's trade surplus last year reached US$55.7 billion, potentially putting it in Trump's focus.
Earlier this month, Trump addressed Congress, highlighting his concerns over trade relations with South Korea. Despite his claim that South Korea's average tariff is significantly higher than the U.S.'s, the actual tariff under the bilateral free trade agreement is less than 1 percent.
Addressing market concerns about the uncertainty surrounding Trump's trade policy, Hassett noted that clarity would emerge by April 2. He reassured that countries adhering to the rules should not be significantly affected by the U.S.'s approach.