U.S. President Donald Trump’s proposed sweeping tariffs on trading partners are set to be more targeted and selective than expected, Bloomberg reported on March 22. Trump’s announcement on so-called reciprocal tariffs, slated for April 2, will likely focus on countries with which the U.S. has large trade deficits, White House officials told Bloomberg. South Korea, which is the eighth-largest contributor to the U.S. trade deficit as of 2024, is among the countries that could be affected by targeted reciprocal tariffs.
The South Korean government is bracing for the possibility of being included in the reciprocal tariff announcement and has stated its intent to engage in negotiations with Washington to mitigate the potential impact. While Trump declared a “no exceptions” stance on reciprocal tariffs earlier, he later signaled there will be “flexibility.”
Trump’s reciprocal tariffs incorporate tariffs and non-tariff barriers that match those imposed by trading partners on the U.S. White House officials and Trump aides told Bloomberg that while it remains unclear which countries will be targeted, the European Union, Mexico, Japan, South Korea, Canada, India, and China are likely candidates. These are among the top 10 nations with which the U.S. runs the largest trade deficits. Trump has reportedly called these countries “trade abusers” when discussing the matter.
“April 2nd is going to be liberation day for America. We’ve been ripped off by every country in the world, friend and foe,” Trump said on March 21.
South Korea’s Minister of Trade, Industry and Energy Ahn Duk-geun told reporters on March 21 that most countries will be unable to avoid the impact of U.S. tariff measures. “Since responding to U.S. tariff policy isn’t a one-off negotiation, we will work to minimize the damage on our industries and companies,” he said. He indicated that South Korea plans to engage in follow-up negotiations with the U.S. after the initial tariff measures are announced next month.
During meetings with U.S. Commerce Secretary Howard Lutnick from March 20 to 21, Ahn requested that South Korea be granted exemptions or deferred action if included in the list of targeted countries for reciprocal tariffs. “We emphasized the close industrial ties between the two countries, particularly in high-tech sectors, and emphasized the need for favorable treatment,” Ahn said. He said discussions included non-tariff barriers, such as the U.S. complaint over South Korea’s import ban on beef from cattle older than 30 months, despite South Korea imposing virtually zero tariffs on U.S. products under the bilateral free trade agreement.
Experts note that since it would be impossible to comprehensively assess tariff and non-tariff barriers in every country and set corresponding tariff rates, the U.S. will likely target countries with which it runs the largest trade deficits first. “With only about 200 staff at the USTR, it would be unrealistic to evaluate every country’s trade barriers and determine reciprocal rates,” said Yeo Han-koo, a senior fellow at the Peterson Institute for International Economics and former South Korean trade minister.
