Trump Holds White House Press Conference
"Tariffs Could Be Permanent, But Negotiations Are Possible"
U.S. President Donald Trump stated on the 7th (local time) that he is not considering a comprehensive mutual tariff suspension with countries around the world and expressed his determination to push forward with the tariff policy. However, he left open the possibility of negotiations with trading partners after the tariffs take effect. He warned China, which has announced retaliatory tariffs against the U.S., that if China does not withdraw its countermeasures, the U.S. will impose an additional 50% tariff, bringing the total additional tariff to 104%. This has raised concerns that the Trump-led tariff war could escalate into a chicken game.
President Trump, during a press conference held after a summit with Israeli Prime Minister Benjamin Netanyahu at the White House on the same day, responded to a question about the possibility of a mutual tariff suspension scheduled to take full effect on the 9th by saying, "We are not considering that."
He added, "I spoke with the Japanese Prime Minister this morning and had a very good conversation," and "Many countries are coming to negotiate with us, and they want a fair deal."
Earlier that morning, local media reported that President Trump was considering a 90-day suspension of mutual tariffs. The White House immediately refuted this as "fake news," and President Trump also dismissed the possibility of delaying the tariff enforcement.
However, President Trump left room for negotiation. The U.S. implemented a 10% basic tariff on mutual tariffs announced on the 2nd against global trading partners on the 5th, and punitive additional tariffs on the "worst violators" will take effect on the 9th.
He said, "We will open the door to fair and good deals with all countries," and added, "There may be permanent tariffs, and because there are things we need beyond tariffs, negotiations are possible." He further emphasized, "There are non-monetary tariffs as well," pressuring trading partners to remove non-tariff barriers.
Accordingly, the U.S. is expected to fully implement the announced mutual tariffs as scheduled on the 9th. Afterwards, it is anticipated that tariff rate reductions and other matters will be discussed through individual trade negotiations with each country.
On the other hand, President Trump reiterated a warning that China, which has announced retaliatory tariffs against the U.S. mutual tariffs, could face an additional 50% tariff.
He said, "As you know, China imposed an additional 34% tariff on top of the existing unreasonable tariffs in response to my statements," and "If China does not withdraw by 12 noon tomorrow, we will impose an additional 50% on top of the tariffs already imposed." He also mentioned, "I have a good relationship with Chinese President Xi Jinping, and I hope that relationship continues," but added, "This is a one-time opportunity."
Earlier, China announced that it would impose a 34% tariff on U.S. imports in response to the 34% mutual tariffs announced by the U.S. on the 2nd. In response, President Trump warned of further retaliation by announcing on his social media platform Truth Social that an additional 50% tariff would be imposed on China on top of the previously announced tariffs, and he reaffirmed this policy at the afternoon press conference. Since the start of his second term, President Trump has already imposed two rounds of additional 10% tariffs on China. If President Trump's warning becomes reality, the total additional tariffs on China since the start of his second term would rise to a staggering 104%. Furthermore, President Trump stated on social media in the morning that all talks with China would be suspended, followed by, "Negotiations with other countries will begin immediately."
With the U.S. and China now locked in a strong confrontation, concerns are growing that the tariff conflict between the two countries could escalate into a chicken game, intensifying the trade war.
President Trump also continued his criticism of the European Union (EU), which he has expressed dissatisfaction with on multiple occasions.
He claimed, "The EU was actually created to harm U.S. trade," and "It was formed to create a unified force against the U.S. and a somewhat monopolistic situation." Regarding one way the EU could reduce its trade surplus with the U.S., he mentioned purchasing U.S. energy, saying, "They need energy, so they will buy our energy."
President Trump asserted that the tariff policy is based on America First and repeatedly emphasized its legitimacy. He said that imposing mutual tariffs is "an opportunity to change the backbone of our country and reset our trade table," and "If we can achieve truly fair deals that benefit America, that is America First." He added, "In the past, America was put last, not first, but we will no longer allow that," emphasizing, "Now America is first."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
