Trump says US will ‘work something out’ with South Korea after tariff threat
The Chronify
US President Donald Trump signaled room for compromise after announcing a surprise plan to raise tariffs on South Korean imports to 25%. The move has unsettled Seoul, which says it was caught off guard by Washington’s decision.
Donald Trump on Tuesday said the United States and South Korea would “work something out” after his administration threatened to sharply raise tariffs on imports from the key Asian ally.
“We’ll work something out with South Korea,” Trump told reporters as he departed the White House for a speech in Iowa, without providing further details.
The comments followed Trump’s announcement on Monday that he would increase US tariffs on South Korean autos and other goods to 25%, citing Seoul’s failure to fulfil commitments tied to a previous trade deal.
Trump’s chief trade negotiator, Jamieson Greer, said Washington had earlier agreed to cut tariffs on South Korean goods from 25% to 15% in exchange for Seoul’s pledge to invest $350 billion in the United States, allow greater access for US automobiles, and remove certain non-tariff barriers.
“But, in the meantime, they haven’t been able to get a bill through to do the investment,” Greer told Fox Business Network, adding that South Korea had also fallen short on commitments related to agriculture, industry and digital services.
In a social media post on Monday, Trump said the tariff hike was necessary because South Korea’s parliament had not delivered on the agreement he reached with its president last year.
The announcement rattled officials in Seoul, who said they were taken by surprise and are now scrambling to respond to what could deal a serious blow to the export-driven South Korean economy.
“We’ll work something out with South Korea,” Trump told reporters as he departed the White House for a speech in Iowa, without providing further details.
The comments followed Trump’s announcement on Monday that he would increase US tariffs on South Korean autos and other goods to 25%, citing Seoul’s failure to fulfil commitments tied to a previous trade deal.
Trump’s chief trade negotiator, Jamieson Greer, said Washington had earlier agreed to cut tariffs on South Korean goods from 25% to 15% in exchange for Seoul’s pledge to invest $350 billion in the United States, allow greater access for US automobiles, and remove certain non-tariff barriers.
“But, in the meantime, they haven’t been able to get a bill through to do the investment,” Greer told Fox Business Network, adding that South Korea had also fallen short on commitments related to agriculture, industry and digital services.
In a social media post on Monday, Trump said the tariff hike was necessary because South Korea’s parliament had not delivered on the agreement he reached with its president last year.
The announcement rattled officials in Seoul, who said they were taken by surprise and are now scrambling to respond to what could deal a serious blow to the export-driven South Korean economy.
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