EU Proposes Mutual Tariff Elimination to the U.S.
Whiskey Tariffs Also Removed
Jeong In-kyo to Visit Washington on the 8th
China Retaliates with Identical Tariff Rates Against the U.S.
The Donald Trump administration has firmly ruled out the possibility of mutual tariff waivers, prompting governments around the world subject to tariff measures to become increasingly active. The European Union (EU) announced plans to abolish tariffs on all manufactured goods, including automobiles, while South Korea and Japan are preparing negotiation teams to engage with the Trump administration to coordinate tariff rates. China, locked in a tariff war with the U.S. without any concessions, retaliated against the Trump administration’s tariff demands by imposing a 34% counter-tariff, raising concerns that the trade war between the two countries may not be resolved quickly.
On the 7th (local time), Ursula von der Leyen, President of the European Commission, stated, "We are ready to negotiate with the United States," adding, "We have actually proposed mutual zero-for-zero tariffs to the U.S." She further noted that all manufactured goods, including automobiles, would be subject to mutual zero tariffs. The EU also plans to reduce its initially planned retaliatory tariffs on $26 billion (approximately 42 trillion won) worth of U.S. goods, which were prepared in response to U.S. steel and aluminum tariffs. Accordingly, tariff measures on U.S. liquors such as bourbon whiskey, which had angered President Trump, will also be withdrawn.
The Wall Street Journal (WSJ) evaluated the EU’s move by saying, "The EU seems to have chosen a moderate path. It is standing up to Trump but not being overly hostile," and added, "The EU has twice delayed the speed of retaliatory tariffs to buy more time for negotiations with the Trump administration."
Benjamin Netanyahu, Prime Minister of Israel, which claims to be a U.S. ally, announced that after being hit with a 17% mutual tariff, "We want to completely eliminate the trade deficit between the U.S. and Israel," and declared that all tariffs on U.S. products would be canceled. Narendra Modi, Prime Minister of India, who visited the U.S. and worked hard on relations, has also notified the U.S. that India will abolish tariffs on American goods. Even Lesotho, a small country in South Africa, plans to send a delegation to the U.S. to protest tariffs on American exports, including Calvin Klein and Levi’s jeans, according to The New York Times (NYT).
Asian countries, many of which have been subject to high tariffs, are also struggling to change the Trump administration’s stance. Japan, which received a 24% tariff despite offering a basket of investment gifts to the U.S., will have Prime Minister Shigeru Ishiba personally step in to resolve the tariff issue. At the Budget Committee of the House of Councillors on the same day, Prime Minister Ishiba expressed his willingness to negotiate, saying, "If necessary, I will meet with President Trump and will not hesitate." Taiwan, concerned about its key export industries such as semiconductors due to a 32% tariff, emphasized in a recent speech by President Lai Ching-te that "Taiwan has no plans to retaliate with tariffs," and that the investment promised by Taiwanese company TSMC in the U.S. will proceed as planned.
South Korea, where political uncertainty has somewhat eased following the impeachment of former President Yoon Seok-yeol, will have Trade Minister Jeong In-kyo visit Washington on the 8th to begin consultations with the U.S. Trade Representative and others. The NYT reported, "Minister Jeong plans to meet with officials from the Trump administration to express concerns about the new tariffs and seek ways to minimize their impact on South Korea’s export-driven economy."
Vietnam, one of the countries hit hardest by the tariff demands, saw Communist Party Secretary General Lam send a letter directly to President Trump requesting a delay of at least 45 days in tariff imposition. Cambodia, which faced a 49% tariff bomb, also sent a letter to the U.S. promising to immediately reduce tariffs on 19 types of American imports in an effort to appease the U.S., according to The Washington Post (WP). WP interpreted this as "some governments responding with immediate and bold concessions as the Trump administration announced tariffs on most trading partners, causing turmoil in the global market," and "lowering tariffs on American goods to meet President Donald Trump’s demands in the trade war."
China alone, having exchanged retaliatory measures once with the U.S., maintained a rigid stance by imposing counter-tariffs at the same rate (34%) in response to additional tariff attacks. The WSJ reported, "China is becoming increasingly defiant, making it unlikely that China will back down."
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