President Donald Trump has stated that he will impose mutual tariffs on trading partners around the world as scheduled without exemption. Governments from various countries are requesting phone talks with President Trump and sending delegations to the United States. Some countries are struggling to woo President Trump by proposing to eliminate or reduce tariffs on American products.
According to reports on the 7th (local time) from The New York Times (NYT) and The Washington Post (WP), the European Union (EU) proposed eliminating tariffs on American automobiles and manufactured goods and urged negotiations with the United States. Maros Sefcovic, the EU Commissioner for Trade and Economic Security, noted, "It is true that the EU faces lower tariffs when exporting to the United States for passenger cars, but for pickup trucks, the U.S. tariff rate can be as high as 25%." He added, "If this is the issue, let's seek possibilities to lower it all to 0% through dialogue."
Vietnam, facing a high mutual tariff of 46%, was the first to contact the White House immediately after the tariff announcement, proposing to eliminate tariffs on American products. President Trump also stated after speaking with the General Secretary of the Communist Party, "It was a very productive call," adding that discussions will be pursued soon.
Taiwan, which faced a 32% tariff, stated, "There will be no retaliatory tariffs." Taiwan President Lai Ching-te declared in a recent speech that Taiwan will discuss duty-free trade with the United States and increase American investment in information technology (IT) and energy sectors while expanding purchases from the United States in agriculture, industry, and military sectors. Taiwan's exports to the U.S. last year amounted to $111.4 billion (approximately 164 trillion won), which accounts for over 23% of its total exports. Among these, the share of information and communication products and electronic components reached 65.4%.
Indonesia has announced that it will send a high-level delegation to the United States for direct negotiations. The Philippines also stated it would reduce tariffs on American products and announced that discussions will take place soon in the United States. Cambodia, which is expected to face the highest tariff rate in Asia at 49%, also conveyed a letter to President Trump stating it will immediately reduce tariffs on American products for 19 items.
Lesotho in Southern Africa is forming a delegation to discuss tariffs expected to be imposed on its clothing exports. The small country, with a population of 2 million and a gross domestic product (GDP) of $2 billion (approximately 3 trillion won), exports fabrics and diamonds to American global denim brands such as "Calvin Klein" and "Levi's." Lesotho has been imposed the highest tariff rate (50%) by President Trump, citing trade surplus with the U.S. According to Oxford Economics, Lesotho's exports to the U.S. last year totaled $23.7 million (approximately 29 billion won), accounting for about 10% of its total GDP.
However, foreign media analyzed that the outlook for negotiations is not very bright. This is because the United States is raising concerns over "non-tariff barriers." It demands not only that tariff rates be lowered but also that various regulations related to exports be relaxed. President Trump's intention is to increase U.S. exports to reduce the trade deficit.
President Trump has indicated a tough stance, stating, "There will be no negotiations without a trade surplus." He said, "We are losing hundreds of billions of dollars in trade with China," adding, "Unless the surplus is resolved, there will be no exceptions for any country (regarding tariffs)." However, as foreign governments continue to present tariff reduction proposals, the White House has indicated it is leaving some room for negotiations, according to the NYT.
Currently, the countries that have received exemptions from the "Trump Tariffs" are Mexico, Canada, and Russia. Luis Gutierrez, Deputy Minister of the Ministry of Economy of Mexico, stated, "Thanks to friendly dialogue with the United States, we have been recognized for tariff exemptions, and Mexican exports use more American raw materials compared to those from Vietnam and China."