Among the countries that have reached a tariff agreement with the United States, a 'dreaming of the same dream' situation continues. Korea, Japan, and the European Union (EU) have promised hundreds of billions of dollars in investments in the U.S. and have resulted in mutual tariff reductions, but differences in interpretation have emerged between the U.S. and these countries over how such investments will be implemented.
On the 5th (local time), U.S. President Donald Trump said in an interview with CNBC's 'Squawk Box' that the investments promised by various trading partners are 'not loans that the U.S. has to pay back, but money (they) are giving to the U.S.,' adding, 'It's money we can use for investments as we want.'
When asked by the host how U.S. investments work, President Trump responded by explaining that Japan's commitment to invest $550 billion in the U.S. is 'like a baseball player's signing bonus.' He emphasized, 'I received a signing bonus of $550 billion from Japan. This is our money.'
This is different from what the parties to the agreement have explained so far. Our government has described the $350 billion investment in the U.S. as a 'reinvestment concept,' stating that a significant portion consists of lending and loan guarantees. Japan has also clarified that it is not just a simple investment, but is providing participation, loans, and loan guarantees to promote private corporations' investments in the U.S.
In response to a question about details of the EU's investments in the U.S., President Trump stated, 'The details are $600 billion, which is money I can invest in anything I want,' adding, 'Since they have essentially deceived us for years, it's now time for them to pay a price. They must pay that price.'
He also warned that he would monitor the implementation of investments by trading partners and could raise tariff rates if promises are not fulfilled. He cited the EU and answered a host's question about what would happen if they did not fulfill their promised investments, saying, 'They would have to pay a tariff of 35%.' This indicates that since they decided to invest in the U.S. in exchange for lower tariffs, any non-fulfillment of the investment would lead to a retaliation by raising tariffs.
There were also complaints about countries showing a passive attitude toward trade agreements. President Trump commented, 'India is buying Russian oil and supporting the war. That situation is unacceptable,' adding, 'I compromised at a 25% tariff, but I will likely raise it much higher within 24 hours.' In fact, on the following day, the 6th, President Trump raised the tariff rate on India to 50%.
Regarding China, he stated, 'We are maintaining a good relationship,' emphasizing that the meeting with Chinese President Xi Jinping was requested by Xi's side. He continued, 'The media reports it as if I wanted the meeting, but that's actually the opposite.' He noted, 'If we finalize (trade) negotiations, I am likely to meet before the end of the year,' but also mentioned, 'If we don't finalize the negotiations, I will not meet.'
President Trump expressed that the disappointing aspect is not about the U.S. but about China. He said, 'Once I raised tariffs to 145%, China was on the brink of collapse,' adding, 'China is very dependent on the U.S.' He reiterated, 'My relationship with President Xi is very good, and I believe we can achieve a good agreement.'