Separate duties for items such as cars and steel. If Korea retaliates, the U.S. will also add that much. If trade barriers are removed, we will consider adjustments.
Trump and Lee
‘On the 7th, U.S. President Donald Trump stated, “We will impose mutual tariffs of 25% on Korea starting August 1.” Trump posted a letter on his social media platform, Truth Social, addressed to President Lee Jae-myung, saying, “Trade with Korea has not been fair for a long time” and that “25% is far from sufficient to address the trade deficit imbalance.” He also warned about the possibility of Korea imposing ‘retaliatory tariffs’, stating, “If Korea imposes additional tariffs, we will add that much to the 25%.” As the U.S. and Korea were unable to reach a trade agreement before the deadline for mutual tariffs, it is expected that there will continue to be noise in the relationship between the two countries.
Trump said, “(The mutual tariffs) will be imposed separately from item-specific tariffs, and if goods are transshipped (through a third country), we will impose even higher tariffs.” Trump had previously imposed a 25% mutual tariff on Korea on April 9. With item-specific tariffs already imposed on major Korean exports to the U.S., such as automobiles and parts at 25%, and steel and aluminum at 50
%, the mutual tariffs are likely to significantly impact the export front to the U.S. Trump also mentioned, “As you know, if companies in Korea or your country decide to manufacture products in the U.S., there will be no tariffs,” adding, “In fact, we will do everything possible to expedite and professionalize the permitting process.”
