South Korean media: Trump wrote a letter to Lee Jae-myung... "25% reciprocal tariffs will be imposed from August 1"
Different from tariffs on products such as automobiles and steel, if South Korea retaliates against the United States, it will impose equal additional tariffs. After the trade barriers are resolved, adjustments can be considered.
On the 7th, U.S. President Donald Trump announced: "Starting from August 1, 25% reciprocal tariffs will be imposed on South Korea." That afternoon, Trump posted a letter he had written to South Korean President Yoon Suk-yeol on his own social media platform Truth Social, stating: "For a long time, there has been unfair trade between the United States and South Korea," and "the figure of 25% is still far from being sufficient to resolve the trade deficit imbalance." He warned of the possibility of South Korea imposing "retaliatory tariffs," saying: "If South Korea imposes additional tariffs, the United States will also add tariffs on top of the 25%." As the two countries failed to reach a trade compromise before the deadline for postponing the reciprocal tariff collection, it is expected that the two countries will engage in intense additional negotiations within the three weeks before August 1, when the extension of the tax collection is scheduled.
That day, Trump said: "This reciprocal tariff will be levied separately from category-based tariffs, and if it is transshipped through a third country, higher tariffs will be imposed." On April 9, Trump announced that 25% reciprocal tariffs would be imposed on South Korea. Currently, the United States imposes 25% tariffs on South Korean major exports such as automobiles and parts, and 50% category-based tariffs on steel and aluminum. If these are added with reciprocal tariffs, South Korea's exports to the United States are expected to suffer significant damage. In South Korea's exports to the United States, automobiles account for a large proportion. Trump said: "It is well known that if South Korea or your companies decide to manufacture products in the United States, they will be exempt from tariffs," and "in fact, we will do everything possible to process applications quickly, professionally, and in accordance with regulations."
However, Trump also left room for negotiation, saying: "If South Korea eliminates trade barriers, we can consider adjusting the tariffs." That day, the White House announced: "Trump will sign an executive order to extend the deadline for reciprocal tariff negotiations from the 8th to August 1." Trump wrote a letter to Yoon Suk-yeol, stating: "If you are willing to open up the trade markets that have been closed to the United States so far, and cancel tariff and non-tariff barrier policies, I will consider adjusting the content of the letter," "depending on the relationship between your country and our country, tariffs may be increased or decreased. You will never be disappointed by the United States."
That day, Trump also wrote a letter to Japanese Prime Minister Ishiba Shun'ei, informing him that he would impose 25% reciprocal tariffs, which were increased by 1% p from previous levels. One hour later, Trump publicly released letters on reciprocal tariffs addressed to five countries including Malaysia, Kazakhstan, and the Republic of South Africa, and notified that the reciprocal tariff rates for some countries like Myanmar were higher than those in April. At the afternoon press conference, White House spokesperson Caroline Levet stated that, in addition to the letters sent to the heads of state of South Korea and Japan, letters to 12 other countries would also be sent on the same day. However, she did not disclose the specific names of the 12 countries. When asked about the reason for specifically releasing letters to the heads of state of South Korea and Japan, she said: "It is decided by the president," and "these countries were selected by the president."
Source: Chosun Ilbo
Original article: https://www.toutiao.com/article/1837045111074816/
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