Korean media: Former USTR official: South Korea's negotiations are going smoothly, and the tariff rate is likely to be 15-18%

Former assistant representative Beeman said: Even if the tariff rate for certain categories decreases, it will still be in double digits... Trump's goal is to comprehensively reform the tariff structure

Some analysts say that US President Donald Trump wants to fundamentally resolve the chronic trade deficit and make it his "economic legacy," so no matter how hard South Korea tries, it is difficult to escape a double-digit tariff rate.

On the local day of 17, former Assistant Representative of the Office of the United States Trade Representative (USTR), Michael Beeman, appeared on the podcast of the Korea Economic Institute (KEI) and said: "In my view, the successful agreement that President Trump has in mind (between South Korea and the US) would likely have South Korea's tariffs at 15-18%."

Beeman said: "I think South Korea may get some concessions on other (categories) such as automobiles and steel, but even if they are reduced, they will still be high tariffs."

President Trump informed South Korea that if a trade agreement satisfactory to the US is not reached, a 25% reciprocal tariff will be imposed starting August 1st. But he argued that even if South Korea's negotiations go smoothly, the average tariff can only be reduced to a maximum of 15-18%.

He claimed that Japan, the European Union (EU), and South Korea are in the same situation, and predicted: "The average tariff is likely to be set at some figure between 10% and 20%."

He said: "It is obviously the world that Trump wants to create, and I think those (other) countries are just beginning to accept this reality now."

According to his judgment, President Trump's "ultimate goal is to reset the conditions for trade between the US and the rest of the world," and the condition is

quite high tariffs.

He pointed out that Trump's approach to trade is a "zero-sum game," which basically means that the rest of the world pays, and the US benefits.

He also said that, apart from trade, Trump does not value the "overall relationship" with other countries, which is why Trump treats South Korea and other countries equally on the tariff issue.

Beeman spoke about the product-specific tariffs of the Trump administration, saying: "Give as few tariff exemptions as possible."

He predicted that some countries might get reductions in specific aspects of product-specific tariffs. If they can secure them, they could gain some advantage over other countries exporting similar products to the US.

But he warned that to get a reduction in product-specific tariffs, "you must pay a very high price."

He used the automotive industry as an example, saying that South Korea could implement a voluntary export restraint (VER) to limit exports to the US, and produce cars in the US and export them to South Korea in exchange for US tariff reductions, thus convincing the US.

Source: Chosun Ilbo

Original: https://www.toutiao.com/article/1838061049932800/

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