Data Analysis Firm Exiger Estimates… China to Bear 220 Trillion KRW Tariff Burden
(Seoul = Yonhap News) Reporter Hwang Jung-woo – U.S. President Donald Trump’s newly announced reciprocal tariffs and other new tariffs imposed by the U.S. administration are estimated to generate an annual income of 600 billion USD (about 880 trillion KRW), according to reports.
The New York Times (NYT) reported this, citing data from the data analysis firm Exiger, following President Trump’s announcement of reciprocal tariffs.
According to Exiger, most of the 600 billion USD revenue comes from ten countries.
By country, China (with a reciprocal tariff rate of 34%) is estimated to bear an additional tariff of 149 billion USD (about 220 trillion KRW), Vietnam (46%) 63 billion USD (about 93 trillion KRW), Taiwan (32%) 37 billion USD (about 54 trillion KRW), and Japan (24%) 36 billion USD (about 53 trillion KRW).
Given that China was already subject to an additional 20% tariff due to previous issues like drug importation, the new 34% reciprocal tariff effectively results in a 54% tariff rate.
Additionally, the combined additional tariff burden on Germany and Ireland from Europe is estimated to be 41 billion USD.
Exiger assessed the announcement of the reciprocal tariffs as a “monumental policy change that will reshape procurement, pricing, and geopolitical strategies.”
Bloomberg reported that “while Trump tariffs were imposed on all countries without exception, Asia and Europe were hardest hit.”
According to Exiger’s estimate, the additional tariffs borne by four Asian countries—China, Vietnam, Taiwan, and Japan—amount to 281 billion USD, nearly half of the total 600 billion USD.
Including other Asian countries in the top 15 with significant trade surpluses with the U.S., such as Korea (25%), India (26%), Malaysia (24%), and Indonesia (32%), the income from tariffs collected by the Trump administration is expected to come predominantly from Asia.
Wendy Cutler, Vice President of the Asia Society Policy Institute (ASPI) and former U.S. Trade Representative Office Deputy Representative, told Bloomberg, “Asian countries, in particular, seem to be in the line of fire.”
As of last year, the top ten countries with the most significant trade surpluses with the U.S. were China (295 billion USD), Mexico (107.2 billion USD), Vietnam (123 billion USD), Ireland (87 billion USD), Germany (85 billion USD), Taiwan (74 billion USD), Japan (68 billion USD), Korea (66 billion USD), Canada (64 billion USD), and India (46 billion USD).
President Trump announced that “for years, while other countries have enriched and fortified themselves at our expense, American citizens who have been working hard were left to simply watch. Now it is our turn to prosper,” as he unveiled the reciprocal tariffs.
Previously, Peter Navarro, the White House Trade and Manufacturing Policy Adviser, stated in a Fox News interview on the 30th of last month that over the next ten years, approximately 6 trillion USD (about 8,850 trillion KRW) would be raised through tariffs, which would be used as funds for “the largest tax cuts in American history for the middle class.”
It’s also projected that tariffs on automobiles alone could generate 100 billion USD (about 148 trillion KRW) annually, and other tariffs could bring in 600 billion USD (about 885 trillion KRW) annually.
President Trump announced a “10%+α” reciprocal tariff on all countries.
The new reciprocal tariff, ostensibly aimed at eliminating discrimination against U.S. businesses caused by other countries’ tariff and non-tariff barriers, consists of a basic tariff (effective in 5 days) and individual tariffs on so-called “worst countries” (effective in 9 days).
For South Korea, a 25% tariff is applied. The reciprocal tariff rates by country are as follows: ▲ China 34% ▲ European Union (EU) 20% ▲ Vietnam 46% ▲ Taiwan 32% ▲ Japan 24% ▲ India 26% ▲ Thailand 36% ▲ Switzerland 31% ▲ Indonesia 32% ▲ Malaysia 24% ▲ Cambodia 49% ▲ United Kingdom 10% ▲ South Africa 30%.