Trump’s ‘Reciprocal’ Tariffs On South Korea, Other Countries, Take Effect

Washington: The United States’ reciprocal tariffs, including 25 per cent duties for South Korea, went into effect on Wednesday, as America’s trading partners are seeking to negotiate a deal to reduce tariff rates and minimise the potential impact of President Donald Trump’s trade policy on their economies.

The reciprocal tariffs on nearly 60 countries took effect despite lingering concerns that new US duties could lead to higher inflation and slower economic growth. Trump has been using tariffs to increase federal government revenue, reduce the U.S.’ trade deficits and boost domestic manufacturing, reports Yonhap news agency.

Last Wednesday, Trump unveiled a minimum 10 percent “baseline” tariff, which went into effect Saturday, as well as the reciprocal tariffs on what his administration called “the worst offenders,” including South Korea, Japan and China.

The U.S. imposed 24 percent reciprocal tariffs on Japan, 32 percent on Taiwan, 20 percent on the European Union, 49 percent on Cambodia and 46 percent on Vietnam, to name a few.

Some goods are not subject to reciprocal tariffs, including steel, aluminium, automobiles and key auto parts — the targets of the already announced industry-specific tariffs, according to the White House.

The country-by-country tariffs were customised based on trading partners’ tariff- and non-tariff barriers, as well as other factors, such as countries’ exchange rate-related policies and practices, U.S. officials said.

Meanwhile, South Korea said it will prioritise efforts to lower tariff rates in upcoming negotiations with the United States. (IANS)

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