Questioned on How Many Countries Will Be Included in Reciprocal Tariffs
Specifically Points Out Unfairness in Asia
Says Computers, Semiconductors, and Pharmaceuticals Will Thrive if Produced in the U.S.
U.S. President Donald Trump stated that the reciprocal tariffs to be announced on the 2nd of next month will "start with all countries." This is interpreted as suggesting the possibility of imposing universal tariffs rather than targeted tariffs aimed at specific countries based on tariff rates. Foreign media interpreted the Trump administration's leaning toward universal tariffs as being due to the burden of increased government budget deficits caused by tax cut policies.
Trump: "Basically all countries"... Possibility of imposing tariffs up to 20%
On the 30th (local time), President Trump spoke to reporters on a plane traveling from Palm Beach, Florida to Washington D.C., responding to a question about how many countries would be included in the initial announcement.
When asked if he planned to target 10 to 15 countries first, Trump replied, "I have never heard rumors about 10 to 15 countries," adding, "Basically, we are talking about all countries." The core of recent internal discussions within the Trump administration has been whether to impose reciprocal tariffs individually on trading partners or to apply universal tariffs to all countries trading with the U.S. In light of Trump's remarks, the possibility of imposing universal tariffs is being anticipated.
There have also been reports that President Trump is considering imposing tariffs of up to 20% on most of the world's trading partners. The Wall Street Journal (WSJ) reported on the same day that "the Trump administration is holding final discussions on the method of reciprocal tariffs to be announced on the 2nd of next month," adding that "the tariff imposition method is leaning toward universal tariffs, and the tariff rate is likely to be set higher at 20% than previously discussed." WSJ analyzed that the reason the Trump administration is leaning toward universal tariffs is "because the tax cut policy has caused the government budget deficit to become a burden."
President Trump also cited Asia as an example of unfair trade practices against the U.S. He stated, "If you look at what has happened to us in history, and go to Asia to see how all Asian countries have treated the U.S. in trade as well as militarily, I don't think anyone would say they treated us fairly or well." However, Trump added, "We will be more generous to them than they have been to us."
No room to reconsider auto tariffs... "In talks with China" regarding TikTok
When asked about the possibility of reconsidering the 25% tariff on automobiles, President Trump said, "No." He mentioned computers, semiconductors, and pharmaceuticals, emphasizing, "As long as they produce products in the U.S., they will do very well." This is interpreted as a statement to pressure investment in the U.S. and relocation of production bases to the U.S. ahead of the reciprocal tariff announcement.
Regarding a question about stagflation (economic stagnation with rising prices), he said, "I haven't heard that term for years," adding, "The U.S. will be more successful and prosperous than ever, and this will be the golden age of America," according to the White House press pool.
Regarding TikTok, the Chinese video-sharing platform whose legal sale deadline (next month 5th) is approaching, he said, "There are many potential buyers, and there is tremendous interest in TikTok," adding, "I hope TikTok stays."
He said, "We are also dealing with China on that issue," adding, "Because they may be related to that issue." Earlier, on the 26th, President Trump suggested that if China cooperates in selling TikTok's U.S. business rights to the American side, tariffs on China could be reduced.
Regarding his repeated suggestion in a broadcast interview about the possibility of a third-term challenge, which is prohibited by the U.S. Constitution, President Trump said, "I don't want to talk about that." However, he added, "But many people are asking me to run again," and said, "We still have a long way to go in thinking about that." By stating that the third-term challenge remarks were not his own will but due to encouragement, he appears to be trying to prevent overinterpretation of the comments.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
