Trump’s 'Reciprocal' Tariffs on South Korea and Other Nations Now in Effect

Washington(The Uttam Hindu):  The United States’ reciprocal tariffs, including a 25% duty on South Korea, officially took effect on Wednesday. As a result, America’s trading partners are now seeking to negotiate a deal aimed at reducing tariff rates and mitigating the potential economic impact of President Donald Trump’s trade policies. These reciprocal tariffs, which target nearly 60 countries, come despite ongoing concerns that the new U.S. duties could lead to higher inflation and slower economic growth. Trump has been using tariffs to boost federal revenue, reduce the U.S. trade deficit, and promote domestic manufacturing.

Last week, Trump introduced a minimum 10% "baseline" tariff, which was implemented over the weekend. He also announced reciprocal tariffs on what his administration considered "the worst offenders," including South Korea, Japan, and China. The U.S. imposed tariffs ranging from 24% on Japan, 32% on Taiwan, 20% on the European Union, 49% on Cambodia, and 46% on Vietnam. For China, the total tariff rate reached 104%, including an additional 50% tariff following a 34% retaliatory tariff imposed by China on U.S. goods.

Certain goods, including steel, aluminum, automobiles, and key auto parts, are exempt from these reciprocal tariffs, as they are already subject to separate industry-specific tariffs. The tariffs were tailored based on various factors, such as the trading partners' tariff and non-tariff barriers, exchange rate policies, and other trade practices, according to U.S. officials. Meanwhile, South Korea has expressed its intention to prioritize efforts to reduce tariff rates in future negotiations with the United States. This came after a phone call between South Korea's acting President Han Duck-soo and U.S. President Trump on Tuesday, where they discussed a range of issues, including tariffs, shipbuilding, energy deals, security, and North Korea.

Following high-level talks, South Korea plans to present concrete proposals and begin direct negotiations with the relevant U.S. trade authorities. The country’s trade minister is also set to travel to Washington to meet with U.S. Trade Representative Jamieson Greer for further discussions on tariffs. Trump described his conversation with Han as "great," mentioning that they discussed several key issues, such as trade, liquefied natural gas purchases, an Alaska pipeline project, shipbuilding cooperation, and defense cost-sharing for U.S. Forces in Korea.