On April 2nd (local time), the United States identified South Korea as one of the countries experiencing a trade deficit ahead of the announcement of mutual tariffs. It also indicated a willingness to eliminate non-tariff barriers.
Kevin Hassett, Chairperson of the National Economic Council (NEC) at the White House, said in an interview with CNBC on the 17th, "The trade deficit with Europe, China, and South Korea has persisted for years, and the reason this trade deficit exists is that non-tariff barriers are in place and tariffs are high, making it difficult for American corporations to compete."
Hassett noted, "If they (countries with trade surpluses with the U.S.) lower all barriers immediately, the negotiations would be over. We expect that many countries will respond positively to President Donald Trump's negotiations. President Trump is very flexible."
He added, "However, many countries will not do so," stating that tariffs will be imposed on countries that do not eliminate trade-related barriers.
Last year, South Korea's trade surplus with the U.S. amounted to $55.7 billion (approximately 81 trillion won), making South Korea the eighth largest country with a trade deficit from the U.S. Since South Korea and the United States have a free trade agreement (FTA) and do not impose tariffs on most items, Hassett's remarks can be interpreted as a call to eliminate South Korea's non-tariff barriers.
Hassett also mentioned, "Clearly, there will be some uncertainty from now until April 2nd (when the mutual tariffs will be announced), but as April arrives, the market will recognize that a reciprocal trade policy is very reasonable."