U.S. President Donald Trump has called for the expiration of the reciprocal tariff card's grace period, which is just ten days away. The biggest concern is whether Korea will be included in the extension.
The Trump administration enacted reciprocal tariffs against Korea and 56 other economic entities last April, but suspended them for 90 days after just 13 hours. China was excluded.
According to a White House briefing on the 28th (local time), once the deadline of next month 8th passes, tariffs could be implemented as early as the 9th.
So far, the U.S. administration has been negotiating tariff rates, trade balance, and non-tariff barrier resolutions with various countries. A deal has already been reached with the United Kingdom.
The reciprocal tariff imposed on Korea totals 25%, which includes a basic 10% rate plus a country-specific differential tariff of 15%. The basic tariff is already in effect. If the grace period is not extended, an additional 15% tariff will apply to most exports to the U.S., except for items like automobiles (25%) and steel and aluminum (50% each).
The cards that President Trump can play include three main options.
Imposing tariffs on all targeted countries as planned, extending grace periods for some countries while imposing tariffs on others, or a total extension of the grace period.
Recent statements from the White House and the administration suggest that extending the grace period for at least some countries appears to be included in the options.
White House Spokesperson Karoline Leavitt noted on the 26th that the possibility of extending the grace period is "likely to be extended," but she emphasized that it is a "presidential decision matter."
Treasury Secretary Scott Bessent expressed hope that negotiations with major trading partners would be concluded by Labor Day (Sept. 1).
The remarks from decision-maker President Trump are more ambiguous. On the same day, he said, "We could extend or reduce it further," adding, "We can do whatever we want." However, he also mentioned, "I will send a letter within the next week (ten days) to clarify what they need to pay," keeping the pressure on.
This implies a message to accelerate negotiations, suggesting that not all countries may be eligible for an extension.
Countries that respond to U.S. demands are interpreted as buying more negotiation time, while those that do not will face tariffs starting from the 9th of next month.
There are variables. President Trump is facing a major negotiation regarding the extension of the reciprocal tariff reduction agreement with China, which ends in August. There are observations that he may feel burdened by the prospect of escalating tensions.