Trump Reaffirms Flexibility on Trade Tariffs, Emphasizes ‘Reciprocity’ in New Policy
U.S. President Donald Trump has reiterated his stance on tariffs, emphasizing that his administration will maintain flexibility in its approach but will implement tariffs that are "basically" reciprocal.
Washington: U.S. President Donald Trump has reiterated his stance on tariffs, emphasizing that his administration will maintain flexibility in its approach but will implement tariffs that are “basically” reciprocal. The new tariffs, set to be rolled out on April 2, will be tailored to each country’s specific trade practices, including tariff- and non-tariff barriers, exchange rates, and unfair trade policies.
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Trump’s Tariff Flexibility and ‘Reciprocal’ Approach
During a press conference, President Trump clarified that while there would be some flexibility in the application of tariffs, the policy will be reciprocal in nature. “The word flexibility is an important word… there will be flexibility, but basically, it’s reciprocal,” Trump said.
The new tariffs will be customized for each trading partner, taking into account their specific trade practices, including unfair trade practices and non-tariff barriers. The President also made it clear that offering tariff exceptions would be problematic, as granting exceptions to one nation would necessitate offering them to all.
America’s Trade Disadvantages
Trump reiterated his ongoing frustration with the U.S.’s trade relationships, stating that the country had been “ripped off” by both allies and adversaries on various fronts, including trade and defense. He explained, “We’ve been ripped off by every country in the world, friend and foe. We’ve been ripped off on trade. We’ve been ripped off on military.”
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Trump pointed out the inequity in global trade, especially in regard to military protection, stating that the U.S. often provides defense assistance without adequate reciprocation from other nations. He assured that some of the funds spent on military protection would be returned to the U.S. through the newly imposed tariffs.
Trump’s Criticism of South Korea’s Trade Practices
Trump specifically criticized South Korea, claiming that the country’s average tariff rate was significantly higher than the U.S.’s. He cited South Korea’s average tariff of around 13.4 percent on its most-favoured-nation (MFN) goods, which is approximately four times higher than the U.S.’s MFN tariff of 3.3 percent. Trump also highlighted that the U.S. has been assisting South Korea militarily and in other areas.
In response, South Korea has been actively engaging with the U.S. to secure exemptions from the new tariffs or at least prevent South Korean companies from being at a disadvantage in the U.S. market.
Trump’s Call for Domestic Manufacturing
Trump also addressed the issue of tariffs by suggesting a solution for businesses looking to avoid the levies. He stated, “How do you avoid paying the tariffs? You build your plant in the United States.” This message underscores Trump’s ongoing push to bring manufacturing jobs back to the U.S. and incentivize domestic production.
As the U.S. prepares to implement these reciprocal tariffs, it remains to be seen how trading partners like South Korea will respond and whether the new policy will spark further negotiations or trade tensions.
