Trump: "25% Tariff on Cars... Over 25% on Semiconductors and Pharmaceuticals"
U.S.-Russia Summit Expected This Month...
Zelensky Criticized as "4% Approval President"
U.S. President Donald Trump announced that he would impose tariffs of 25% on automobiles imported into the United States, and tariffs exceeding 25% on semiconductors and pharmaceuticals. As he warned of a 'tariff bomb' on both automobiles and semiconductors, which are South Korea's largest export items dependent on trade, Korean companies have been put on high alert. Amid the first high-level U.S.-Russia talks aimed at ending the Ukraine war, President Trump also hinted at the possibility of a U.S.-Russia summit later this month.
Trump: "25% Tariff on Cars... Over 25% on Semiconductors and Pharmaceuticals"
At a press conference held at his Mar-a-Lago resort in Florida, where he resides, President Trump responded to questions about the level of automobile tariffs by saying, "Probably around 25%, but I will talk about it on April 2." April 2 is one day after officials in Trump's second-term administration are scheduled to submit a report containing various tariff options on imports entering the U.S.
Regarding tariffs on pharmaceuticals and semiconductors, President Trump said, "It will be over 25%" and added, "It will be significantly higher within a year."
The U.S. currently imposes a 2.5% tariff on passenger cars. President Trump's remarks indicate an intention to raise the tariff rate on passenger cars to 25%, the same level as trucks. The European Union (EU) applies a 10% tariff on U.S. passenger cars, but considering a value-added tax of about 20%, the effective tariff rate reaches approximately 30%, which has been President Trump's claim.
With President Trump reaffirming his intention to impose tariffs on items such as automobiles and semiconductors, Korean companies that rely on exports are expected to be directly hit. Last year, semiconductors accounted for 20.8% of South Korea's total exports, the largest share, followed by automobiles at 10.4%, the second largest. Additionally, on the 12th, President Trump officially announced a 25% tariff on all steel and aluminum products entering the U.S., and mutual tariffs are set to be implemented in April, placing South Korea squarely in the crosshairs of Trump's second-term tariff bomb.
However, President Trump expressed a desire to give foreign companies time to build factories in the U.S. to avoid tariffs, leaving open the possibility of negotiations with major governments and companies.
Before announcing the new tariffs, he said, "I want to give companies time to enter the U.S. If they come in and build factories here, there will be no tariffs. We want to give them a little opportunity." This is interpreted as allowing a grace period or phased tariff increases so companies have time to relocate production bases to the U.S.
President Trump also stated that semiconductor and automobile companies would make announcements related to investment in the U.S. within the near future, though he did not specify any company names.
U.S.-Russia Summit Expected This Month... Zelensky Criticized as "4% Approval President"
As U.S.-Russia negotiations to end the Ukraine war gain momentum, President Trump mentioned the possibility of a summit with Russian President Vladimir Putin later this month. On the same day, the U.S. Secretary of State Mike Pompeo and Russian Foreign Minister Sergey Lavrov attended a ministerial-level meeting in Riyadh, the capital of Saudi Arabia. Both sides agreed to establish a high-level negotiation team, expand cooperation for post-war reconstruction in Ukraine, and discussed lifting sanctions against Russia.
President Trump described the meeting as "very good" and said he could meet with President Putin before the end of this month. He also expressed increased confidence in the possibility of a peace agreement between Russia and Ukraine as a result of the meeting. He emphasized the need for an end to the war, noting that many soldiers from Russia, Ukraine, and even "a large number of North Korean troops deployed to Russia" have died on the battlefield.
Regarding Ukrainian President Volodymyr Zelensky, who expressed dissatisfaction over being 'passed over,' Trump criticized him, saying, "The approval rating of the Ukrainian leader has dropped to 4%."
President Trump said, "They have been at the negotiating table for three years," and added, "They are worried because they cannot sit at the table, but they could have negotiated a long time ago." He further stated, "The Ukrainian people should hold elections. Ukraine is collapsing," accusing President Zelensky of not holding the general election in October 2023 and the presidential election in March last year due to martial law. President Trump also referred to Zelensky, saying, "You should never have started, and you could have made a deal," and criticized, "The continuation of the war is a leadership issue." This attributes the Ukraine war, which began with Russia's invasion in February 2022, to Zelensky's lack of leadership. In this context, the U.S. media Axios recently reported that Zelensky's approval rating is not 4%, but 50% according to recent polls.
Furthermore, President Trump expressed support for the deployment of peacekeeping forces in Ukraine after the war, saying, "(If Europe) wants to do that, I fully support it," but added, "We are far away, so we will not do that." This is interpreted as a negative stance on the U.S. military presence in Ukraine, which was one of the conditions Ukraine requested in the peace negotiations.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
