No Mention of Timing for Lumber and Semiconductor Tariffs
Many Companies Relocating to the U.S. Due to Tariff Policy
Calls Biden Administration's Semiconductor Law a "Disaster"
Amid the announcement of reciprocal tariffs scheduled for April 2, U.S. President Donald Trump said on the 24th (local time) that tariffs on automobiles, pharmaceuticals, and other items would be announced soon. This suggests that the announcement of tariffs by item and the reciprocal tariffs, which were originally expected to be announced together, may be conducted separately. He also reiterated his intention to continue the current aggressive tariff policy, claiming that imposing tariffs induces investment and relocation within the United States.
At a cabinet meeting held at the White House that day, President Trump said, "We will announce very soon about automobile (tariffs)," and "At some point in the near future, we also plan to announce (tariffs) on pharmaceuticals." Regarding sector-specific tariffs on lumber and semiconductors, he said they would be implemented "in the future," but did not provide detailed explanations about the timing of tariff imposition.
He said, "If we have a war-like problem, we need a lot of steel, pharmaceuticals, aluminum, but we no longer produce them," adding, "However, we can produce them. So, not in the distant future but in the very near future, we will announce these (tariffs)."
At this occasion, President Trump reiterated, "We have been exploited by all countries around the world, whether friends or foes," and "We have been used in ways no one has ever seen before."
In February, President Trump reaffirmed the tariff policy by product sectors such as automobiles, semiconductors, and pharmaceuticals, proposing a tariff rate of 25%. For steel and aluminum, a 25% tariff has been imposed since the 12th of last month. Initially, automobile tariffs were expected to be announced together with the reciprocal tariffs on April 2, as President Trump had previously indicated. However, recent reports from the Wall Street Journal (WSJ) and others stated that discussions are underway to postpone the simultaneous announcement of item-specific tariffs at the time of the reciprocal tariff announcement.
President Trump has suggested the possibility of imposing individual tariffs with different rates by country when announcing reciprocal tariffs and emphasized his willingness to lower tariffs if appropriate agreements are reached. On this day as well, President Trump stated that the reciprocal tariffs to be imposed on U.S. trading partners next month could be eased, and some countries might be exempted. He said, "Many countries could be given exemptions."
President Trump also emphasized that many companies have announced plans to relocate or invest in the U.S. following his tariff policy announcement. He said, "Many companies are coming to the U.S. We expect companies worth about $4 trillion to relocate or move to the U.S., and many of them have announced that they will create tremendous jobs."
When Hyundai Motor Group announced an investment plan of $21 billion (approximately 30.849 trillion won) in the U.S. by 2028 on this day, President Trump conveyed that Hyundai Motor Group would not need to pay tariffs. Responding to Hyundai Motor's generous investment, President Trump said, "This investment is clear evidence that tariffs are very effective," adding, "Hyundai produces steel and automobiles in the U.S., so as a result, they do not have to pay tariffs."
He also criticized the Biden administration's semiconductor support law, which provides corresponding support for semiconductor investments in the U.S., calling it "a disaster," and said, "The good thing about tariffs is that they make them want to come back to the U.S. So they are coming back." Referring to Honda Motor's investment case in the U.S., he said, "Remember, if you make it here, there are no tariffs." This is interpreted as a statement to induce corporate investment in the U.S. before the reciprocal tariff announcement.
Additional sanctions on Venezuela were also announced. President Trump stated on his social media platform Truth Social that Venezuela is sending tens of thousands of criminals to the U.S., and that a 25% tariff will be imposed on all trading partners purchasing oil and gas from this country. This tariff measure will take effect on April 2, the U.S. Liberation Day.
President Trump has promoted April 2 as Liberation Day and has pursued protectionist policies as retaliation against trade partners who he has long accused of "deceiving" the U.S. This plan implies a significant expansion of tariffs, but people familiar with internal discussions told Bloomberg News that a more targeted tariff package will be implemented next week.
Countries targeted by U.S. tariffs are rushing to schedule meetings with Trump administration officials to seek tariff exemptions. Maros Sefcovic, the European Union (EU) trade commissioner, is scheduled to meet with Commerce Secretary Gina Raimondo and U.S. Trade Representative (USTR) Katherine Tai on the 25th. The Indian government also plans to request tariff exemptions during scheduled talks with the U.S. delegation.
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