"If Someone Does Something Special for Us, We Will Consider an Exception"
On May 9 (local time), U.S. President Donald Trump stated that "in some cases, there may be exceptions" regarding the basic 10% tariff imposed on countries targeted in trade negotiations. This remark represents a step back from his previously hardline stance on tariff policy.
During a signing ceremony for an executive order held in the Oval Office at the White House that day, President Trump made this statement in response to questions from reporters. He emphasized, "If someone does something special for us, we will consider (an exception)." This suggests that if a trading partner offers significant concessions to the United States during tariff negotiations, he may apply a tariff rate lower than the 10% basic reciprocal tariff rate he set.
On April 5, President Trump imposed a basic 10% tariff on almost all trading partners. In addition, for 57 economic entities, including South Korea, he decided to impose reciprocal tariffs that vary by country (excluding China, with a grace period until July 8). As a result, in the case of South Korea, a reciprocal tariff rate of 25% was applied, which combines the 10% basic tariff with an additional 15% country-specific tariff.
Until now, the Trump administration had maintained that the reciprocal tariff rate could not be lowered below the basic 10% rate during negotiations with each country. However, President Trump's remarks on this day indicate that it may be possible to reduce the rate below 10%. Nevertheless, President Trump said, "There is always a possibility. But there is a minimum tariff rate of 10%, and in the case of some countries, it could be much higher?40%, 50%, 60%?as they have done to us over the past few years."
The previous day, he described the trade agreement with the United Kingdom as a "great deal" and stated, "Four or five other deals will come out immediately, and many more are scheduled in the future." He added, "In the end, we will just sign with the remaining countries, but we always have the basic 10% tariff rate."
He reiterated his claim that the annual trade deficit with China amounts to $1 trillion, saying, "I want China to do well. I am very close to President Xi Jinping and have great respect for him, but we cannot continue to allow them to do this." He added, "Therefore, I believe we can return to fair trade negotiations with China."
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