CBP Veteran: "Trump's Second Term Will Implement Tariff Measures Soon"

AmCham 'US Tariff and Trade Policy Outlook Seminar'
John Leonard, Former Deputy Director, "Documentation of Entire Supply Chain Information"

A former U.S. official raised the possibility that the second Trump administration may soon implement a policy imposing a universal tariff of 10-20% on all imported goods. John Leonard, former Deputy Director of the Trade Division at U.S. Customs and Border Protection (CBP), who served for 35 years at CBP, predicted that enforcement actions by law enforcement agencies would be significantly strengthened not only in trade remedy measures such as tariffs, forced labor, and anti-dumping, but also in export controls and sanctions. Leonard served as the Singapore Attache during the first Trump administration in 2017, handling duties involving eight Asia-Pacific countries including Singapore, Malaysia, Indonesia, Australia, and New Zealand. He also has experience managing key trade policies implemented by the Trump administration in 2018, such as Section 301 of the Trade Act (imposing a 25% tariff on Chinese products) and Section 232 of the Trade Expansion Act (imposing 25% and 10% tariffs on U.S. steel and aluminum products, respectively).

John Leonard, former Deputy Director of the Trade Division at the U.S. Customs and Border Protection (CBP), is presenting at the "Seminar on U.S. Tariff and Trade Policy Outlook Following the U.S. Presidential Election," jointly hosted by AmCham and Kim & Chang Law Office on the 21st at the Crescendo Building in Jongno-gu, Seoul. Photo by AmCham

On the 21st, at a seminar titled "Prospects for U.S. Tariff and Trade Policies Following the U.S. Presidential Election" held at the Crescendo Building of Kim & Chang Law Firm in Jongno-gu, Seoul, former Deputy Director Leonard forecasted that the second Trump administration would soon implement a policy imposing a universal tariff of 10-20% on all imported goods. The seminar was jointly hosted by the American Chamber of Commerce in Korea (AMCHAM) and Kim & Chang Law Firm.

He specifically mentioned that Howard Lutnick, the nominee for the new Secretary of Commerce, is a strong supporter of high tariffs, stating, "In the second Trump administration, alongside high tariff policies, enforcement actions by CBP and law enforcement agencies will become even stronger not only in trade remedy measures such as tariffs, forced labor, and anti-dumping but also in export controls and sanctions."

He emphasized that companies need to document the origin, source, production process, and end-user information of their products more thoroughly and transparently than ever before. He also warned that businesses related to China should be handled with caution. This is because the second Trump administration plans to significantly strengthen trade sanctions against China, including the enhancement of the Uyghur Forced Labor Prevention Act (UFLPA).

He said, "If raw materials or components are procured from China and finished products are exported to the U.S., there is a risk that the goods may be detained under UFLPA regulations," adding, "Since the second Trump administration plans to impose a 60% tariff on all Chinese products beyond the UFLPA, companies must thoroughly review related risks." Furthermore, he advised, "Companies should carefully identify exemption provisions from past programs such as Section 301 of the Trade Act and Section 232 of the Trade Expansion Act, and prepare logistics and shipping navigation swiftly so that goods can arrive before tariff announcements."

John Leonard, former Deputy Assistant Commissioner of the CBP Trade Division (center), Yoo Myung-hee, Professor at Seoul National University Graduate School of International Studies (former Chief Negotiator of the Ministry of Trade, Industry and Energy, right), and James Kim, Chairman and CEO of the American Chamber of Commerce in Korea (AmCham, left), are discussing at the "Seminar on U.S. Tariff and Trade Policy Outlook Following the U.S. Presidential Election," jointly hosted by AmCham and Kim & Chang Law Firm on the 21st at the Crescendo Building in Jongno-gu, Seoul. Photo by AmCham

In this regard, Yoo Myung-hee, a visiting professor at Seoul National University Graduate School of International Studies and former head of the Trade Negotiations Division at the Ministry of Trade, Industry and Energy, stated that preparations should be made for the possibility of additional tariffs early in the second Trump administration and for sanctions related to the U.S. trade surplus. Professor Yoo emphasized, "The likelihood of additional tariffs being imposed early in the second Trump administration is realistically very high," and added, "It is essential to closely monitor not only Korea-U.S. trade relations but also global trends and to prepare strategies in advance to respond to unexpected unilateral measures."

James Kim, Chairman and CEO of AMCHAM, noted that since Korea's investment in the U.S. amounts to $140 billion (approximately 195 trillion KRW), closely preparing for policy changes in the second Trump administration is also an important task for the U.S. He advised, "Korea has recently promised unprecedented investments in the U.S. and has an economy highly dependent on trade," adding, "Understanding and preparing for policy changes in the new U.S. administration is a very important task for companies in both Korea and the U.S."