Extension Granted Once After Reciprocal Tariffs Took Effect
Set to Expire on August 8
White House spokesperson Caroline Leavitt stated on the 26th (local time) that there is a possibility of further extending the suspension of reciprocal tariffs, which is currently set to expire on August 8 next month.
During a White House briefing that afternoon, Leavitt responded to a question about whether the deadline would be extended by saying, "It could possibly be extended," but added, "However, that is a decision for President (Donald) Trump to make."
The Trump administration had implemented differentiated reciprocal tariffs on April 9 for 57 countries, including South Korea (56 countries plus the European Union (EU)), but announced a 90-day suspension of the measure just 13 hours later. This suspension is set to expire on August 8 next month, and this is the first time the White House has officially mentioned the possibility of another postponement. Previously, on the 11th, President Trump stated, "I am willing to extend it. But I don't think it will be necessary," signaling a tough stance.
Since signing its first reciprocal tariff agreement with the United Kingdom last month, the United States has not reported any additional breakthrough in negotiations. Talks with major trading partners such as the EU and Japan also remain deadlocked. In response to the U.S. demand for a 10% reciprocal tariff, the EU has protested and indicated it will take countermeasures on sensitive items such as automobiles and steel.
However, President Trump said at a White House event that day, "We just signed (an agreement) with China yesterday, and there will be a major deal with India as well." Last month, the U.S. and China agreed on a "tariff truce," which included partially suspending issues such as rare earth and technology export controls, and both sides are currently continuing follow-up negotiations.
South Korea is also continuing working-level negotiations, with the new Minister for Trade at the Ministry of Trade, Industry and Energy, Yeo Han-koo, holding talks with U.S. Trade Representative (USTR) Jamieon Gremier and others since the inauguration of the Lee Jaemyung administration.
Meanwhile, the U.S. Department of Commerce has recently indicated that it may expand the range of auto parts subject to the 25% tariff, which is expected to have a significant impact on the South Korean automotive industry. On March 26, President Trump issued a proclamation announcing high tariffs on automobiles and parts, and instructed the Department of Commerce to establish procedures for adding additional parts to the tariff list.
The International Trade Administration (ITA) under the Department of Commerce announced on the 24th that the relevant procedures have been established. As a result, from July 1, domestic parts manufacturers in the United States will be able to submit their opinions on additional items they wish to see subject to tariffs. The Department of Commerce is expected to decide whether to impose tariffs within 60 days after receiving such requests.
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