Trump to Announce Reciprocal Tariffs on Several Countries Next Week

U.S.-Japan Summit Held

Shift from Universal Tariffs to Reciprocal Tariffs in Response to Foreign Regulations

Strong Demand for Opening Automobile Market Expected

Mention of EU's 'Minimum 15% VAT', etc.

President Donald Trump announced plans to introduce reciprocal tariffs next week as part of expanding the 'tariff war' with U.S. economic partners, during a press conference following the U.S.-Japan summit held in Washington on the 7th (local time). He did not provide specific details but mentioned that this measure would affect "everyone."

According to Bloomberg, President Trump told reporters in the Oval Office that "an announcement on reciprocal trade will be made next week," stating, "This is to ensure we are treated equally by other countries, and we want neither more nor less." He added that a meeting on this issue is planned for either Monday or Tuesday.

President Trump suggested that reciprocal tariffs could replace the 10-20% universal tariffs he advocated during last year's campaign. He stated that "most" prefer reciprocal tariffs, calling it the only fair method, and claimed that "no one gets hurt" with this approach. He particularly mentioned that the automobile sector could be targeted, emphasizing that "it is always on the table and a very important issue" and "we need to equalize this (tariff)."

The reciprocal tariffs mentioned by President Trump differ from the universal tariffs unilaterally imposed by the U.S., as they apply the same rates that the counterpart imposes on U.S. goods. However, since tariffs are originally determined reciprocally, it is difficult to identify cases where the U.S. unilaterally imposes tariffs on imports from other countries while U.S. imports face high tariffs.

Therefore, President Trump's remarks are interpreted as encompassing various market protection measures or regulations of the counterpart country rather than simple tariff rates. Previously, President Trump targeted the European Union's (EU) minimum 15% value-added tax, stating that "taxes have skyrocketed."

Washington Correspondent Lee Sang-eun selee@hankyung.com