Trump Says "South Korean Market Opened... U.S. Car Sales Will Surge"

Trump's Interview with CNBC
"Investments from the EU and Others in the U.S. Are a Gift"
Warns of Tariff Hikes If Investment Commitments Are Not Fulfilled

U.S. President Donald Trump claimed on August 5 (local time) that South Korea has opened its market through a trade agreement with the United States, and as a result, sales of American cars will increase significantly.

Reuters Yonhap News

In an interview with CNBC's 'Squawk Box' on the same day, President Trump stated, "South Korea has opened up its country," and added, "This will be more than just opening the market; it will become a tremendous business opportunity."

He continued, "South Korea used to be a closed country, but now we can suddenly sell cars, trucks, and sport utility vehicles (SUVs) in South Korea," emphasizing, "We are truly opening up South Korea."

Even before the trade agreement with the United States, South Korea had consistently imported American cars. However, the U.S. side has pointed out that South Korea's automotive safety and environmental standards have acted as non-tariff barriers. In response, the South Korean government agreed in this deal to recognize vehicles that meet U.S. safety standards as also meeting Korean standards.

President Trump also argued that the investments promised by other countries in exchange for lower tariffs are a 'gift' that the United States does not have to repay, and that these will directly benefit the U.S. economy.

When asked what he would do if the European Union (EU) failed to fulfill its promised investments, he warned, "They will have to pay a 35% tariff." He further stressed, "This is not a loan, it's a gift. We do not have to pay anything back. We have provided $600 billion that can be invested in any sector we want."

Previously, President Trump had announced a plan to impose a 30% reciprocal tariff on the EU, but after the EU promised $600 billion in investments, the tariff was reduced to 15%. South Korea agreed to invest $350 billion in the United States and Japan agreed to invest $550 billion, and in return, both countries will be subject to a 15% tariff.

In response to criticism that the trade agreement lacks detailed provisions, he argued, "The fact that we can invest $600 billion in any sector I want is the detail itself."